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by JimboOmega 5335 days ago
E*Trade won't let me short it, at the moment anyway, because they say they can't borrow shares for it.

I haven't felt this strongly about a short in a long time, either.

1 comments

Of course they can't, the float is teeny.

Eventually you'll be able to buy put options, but you're going to pay a huge premium because of that float - there's a real risk the clearing firm will force your market-maker to buy stock, which has to be priced into the cost of the put.

Buying options is sort of like gambling on a sports team. When the sentiment's one-sided, the odds naturally get adjusted. You'll only make a bit of money shorting Groupon if you're right, but you'll still lose everything if you're wrong.

If you absolutely must do this, at least buy a put spread to hedge your risk at a bit.