Re:Melvin Capital Lost 53% in January, Hurt by GameStop and ...
by tchanglington on Sunday January 31, 2021 @02:56PM
(#25981977)
Payoffs for a short position is stock price right now minus stock price at maturity. You can make a synthetic short by longing a put and writing a call at the same strike price and the problem you see here with the short squeeze is really writing the call.
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