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by echelon 1736 days ago
Is there any way to short evergrande, buy puts, etc.? I didn't find them listed in my brokerage.

Is smart money already doing so?

Any other dominos that will fall because of this, and similar plays to take advantage of them?

4 comments

You are a bit late in the game. Their bonds are already trading at a 75% discount and the stock is down 80% this year.

As a general rule, you shouldn't trade on news like this, unless you understand really well the risks you are taking.

"Smart" money has been betting against Evergrande for years, and losing money on it until very recently. I heard of one asset manager who in hindsight was totally correct about the fundamentals give up trading them at all, they so consistently lost so much money on it (the market can stay irrational etc.). It's a dangerous game!

Mike Bird at the WSJ has been going on about this for years as well.

Timinig issues aside. Typically you cannot short something like this directly. But you can do it indirectly by going after ie. suppliers. For example short the Aussie dollar.
Buy puts on any Chinese ETF?