News for hackers. Stuff that matters.

A comment on Meta lays off 11,000 people. Parent comment

Re:Meta lays off 11,000 people by mattnewton on Wednesday November 09, 2022 @11:52AM (#33534319)
He's also not an accredited investor, selling a stock short in any significant volume is not like making a retail purchase. It can be quite hard to make money off knowing a stock will crash, and that's not even accounting for needing to know _when_ precisely since most of the ways involve short dated options. I gave up after investigating ways to bet on interest rate hikes and market corrections, and just went cash heavy at the end of 2021. That doesn't make you a billionaire it makes you just not lose principle.
[ Parent | on HN ]
Re:Meta lays off 11,000 people by RandomBK on Wednesday November 09, 2022 @02:19PM (#33536511)
Buying some puts also works.
[ Parent | on HN ]
Re:Meta lays off 11,000 people by throwaw20221107 on Wednesday November 09, 2022 @03:58PM (#33537725)
lol exactly (https://xkcd.com/451)

"i need to short a stock"

"have you tried options?"

[ Parent | on HN ]
Re:Meta lays off 11,000 people by mattnewton on Thursday November 10, 2022 @10:14AM (#33547648)
buying puts probably isn't going to make you a billionaire though? The maximum return is the difference between the strike and the lowest price before expiration, and prices generally don't drop to 0. Realistically, you would need access to a lot of leverage to become a billionaire with puts, or already be a multi-millionaire.
[ Parent | on HN ]
Re:Meta lays off 11,000 people by danielmarkbruce on Wednesday November 09, 2022 @02:20PM (#33536534)
From a practical perspective 99.999% of people can short most stocks as much as their net worth will allow. And there are many options trading out over a year.
[ Parent | on HN ]
Re:Meta lays off 11,000 people by andromeduck on Wednesday November 09, 2022 @06:42PM (#33539845)
Most people on HN probably are - especially those at FAANG.

It's just 2 years with 200k individual or 300k combined income, or 1M NAV.

[ Parent | on HN ]
Re:Meta lays off 11,000 people by mattnewton on Thursday November 10, 2022 @10:16AM (#33547674)
True, this was the wrong way to phrase it on my part. What I should have said is "they probably aren't a professional investor who knows what they are doing and has access to lots of capital or leverage, and a Bloomberg terminal or whatever people use these days to locate stock to borrow and sell short".
[ Parent | on HN ]