Recent content by gordon277

I'm no expert on options, but I don't think that's a valid alternative. Puts trade on a much lower volume than the underlying stock. If the stock is not very liquid to begin with, there might not be any puts. And even if there are puts, the bid/ask spreads are much higher. There are also added...

Here's a hypothetical situation. You short some >$20 stock for a few days, for a total of say 3% of your capital - a pretty safe trade overall. But then due to either 1) an error on the exchange, the broker, or anywhere in between 2) lack of liquidity 3) trader error the stock jumps some...