Quick question about shorting

[cashclay]

Because shorts borrow shares, when they begin to short a stock does it make a stock price go down ?
Or only go up when they cover their positions?
Thanks. Sorry im a newbie just looking to start learning.

 

[OptionsOptionsOptions]

Because shorts borrow shares, when they begin to short a stock does it make a stock price go down ?
Or only go up when they cover their positions?
Thanks. Sorry im a newbie just looking to start learning.

Yes ..... shorting tends to push the stock down.

 

[cashclay]

Ah... OK THANK you. Now it seems the price action is getting abit more clearer.

 

[cashclay]

So does call/ put options affect the price of the stock as well?

 

[OptionsOptionsOptions]

So does call/ put options affect the price of the stock as well?

IMO ...... No

 

[Overnight]

So does call/ put options affect the price of the stock as well?

From what I understand, it is the other way around.

The ever-changing price of the stock is what affects the price of the options on that stock. And thus, on the IV/greeks on said options.

 

[cashclay]

Ah i see. So I guess when determining why price action is the way it is we wont need to factor in options holders.

 

[GuerrillaTrading]

Because shorts borrow shares, when they begin to short a stock does it make a stock price go down ?
Or only go up when they cover their positions?
Thanks. Sorry im a newbie just looking to start learning.

Also think of it in terms of selling 'pressure' and buying 'pressure.' It comes from not just new positions entering market, long or short, but also positions being closed, long or short. So with you taking a short position you are adding to the selling pressure and when the 'Longs' close their positions that's adding to the selling pressure as well and vice versa.

 

[cashclay]

Oh i see. Thank you for that. I just would like to understand the meanings behind the actions a bit more to hopefully be able to find an edge, if I could find one at all.

 

[Nobert]

Meanwhile one gets GME with 100%+ short float and then ~stonks only go up~ phase begins.

Would stay away from it if i were you. Too many retailers & pros lost pants/socks over it.