Comment on The Big Short Guy Just Bet $1 Billion That the AI Bubble Pops
ylph@lemmy.world 1 week agoYou can keep a short position for a long time, as long as you can maintain margin, which gets bigger if the stock price continues increasing, and pay margin interest. Sometimes the lender who loaned you the stock can ask for it back, and if you can’t locate any more shares to borrow to replace the returned shares, you might be forced to buy the shares back and close the short, but this is not common, at least during normal market conditions.
sobchak@programming.dev 1 week ago
His company bought puts. They are less risky, because you don’t need to maintain margin. What you pay to buy them is all you can lose.