Re:Kodak announces ICO, stock jumps 44%
by JetSetWilly on Wednesday January 10, 2018 @05:36AM
(#16113939)
All you have to do in this case is short Kodak though. Their price increase is a helpful proxy for crytpocurrency enthusiasm, in the regulated arena you mention. You don't have to short a currency directly.
Re:Kodak announces ICO, stock jumps 44%
by mikestew on Wednesday January 10, 2018 @12:06PM
(#16116648)
Or buy April puts at a $5 strike price for $1, which I did this morning. Corpse of a company goes from $3 to $10 overnight? Should be a no-brainer. We’ll see come April. :-)
Re:Kodak announces ICO, stock jumps 44%
by gallerdude on Wednesday January 10, 2018 @02:21PM
(#16118005)
I’m setting a reminder, best of luck to you!
Re:Kodak announces ICO, stock jumps 44%
by mikestew on Wednesday January 10, 2018 @03:07PM
(#16118520)
It was briefly up to almost $13 after I bought the contracts. sigh, silly irrational markets. But April is a long way off, and they have an earnings report before then. Check back on options expiration in April!
You're taking a concept from the world of finance that's highly regulated, and applying it to a field that's a complete wild West. To execute a proper short one needs:
* to borrow shares from a counter-party that has them, as verified by their broker
* to agree on collateral that your brokerage has verified and ensured is not pledged for anything else, agree on the interest rate you'll be paying to borrow those shares, agree on collateral to support those interest payments for the duration of the short
* a regulated exchange that frowns upon self-trading and wash trading
* an exchange with decent enough activity that a few whales don't control the entire supply/demand, moving the needle into whatever direction they feel like
All of those activities are more or less automated in the world of NYSE/Nasdaq, but what's a good broker and exchange that support all of this with the tokens?