Short SVXY Put Margin Logic

If you sell (go short) the put, your losses are potentially unlimited. You probably - I hope - meant to say that you were buying the put.

Guys, I'm shorting a put -- not the stock, not a call. The stock can go to 1,000 for all I care; I pocket the small premium, if it stays above 20. If it goes to 0, it's put to me at 20, which means I am down 20 -- my max loss.
 
Guys, I'm shorting a put -- not the stock, not a call. The stock can go to 1,000 for all I care; I pocket the small premium, if it stays above 20. If it goes to 0, it's put to me at 20, which means I am down 20 -- my max loss.

Clearly there a broad consensus by other posters here as well as IB that SVXY may break strong support at 0.00 and trade into the negatives!
 
Correct. I believe Goldman put a price target on SVXY at -$40. So if he is forced to buy SVXY at $20, he would lose approximately $6,000 (assuming SVXY is trading near -$40).
How do you lose money if you buy svxy at 20 and now it is higher at40. please explain.
 
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Guys, I'm shorting a put -- not the stock, not a call. The stock can go to 1,000 for all I care; I pocket the small premium, if it stays above 20. If it goes to 0, it's put to me at 20, which means I am down 20 -- my max loss.
please explan than why the high margin requirement
 
How do you lose money if you buy svxy at 20 and now it is higher at40. please explain.

Re-read. -$40. Obviously it is not possible. Unless you give your money to this guy to invest.
james-cordier.jpg
 
If you sell (go short) the put, your losses are potentially unlimited. You probably - I hope - meant to say that you were buying the put.
Why are your losses unlimited. Please show by example.
 
I already provided correct answer above. No need to continue beating the dead horse. The OP can simply verify it.
 
I already provided correct answer above. No need to continue beating the dead horse. The OP can simply verify it.
You made a guess at an overall requirement, There are people who say that losses can be unlimited. I would like to see mathematical proof.
 
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