Just remember,
the people that bought it are investors, not traders. It's not that they wouldnt sell in a price spike, they aren't at the computer checking price like you are.
If you, and every other person shorting it does so, it's trading price will do a great Volkswagen impression, and you'll be out of a job/home.
Don't say I didn't warn you.
That said, it's tempting aint it?
T
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Right, which is why the first rule of not losing your shirt is never to be naked short.
which is also why a lot of people lost a lot of money on VW
Which is why you are completely and utterly wrong. This is nothing like VW. The problem with the short squeeze on VW that killed the shorts was that Porsche owned so many shares. Porsche basically destroyed any ability for shorts to cover by owning such a large stake and having so many options out that could increase their stake. You cannot win there.
This LNKD IPO is not anywhere close to the same thing. There is no major shareholder owning 40%+ of outstanding with an option to grow that to 75%+. These "investors" that you speak of are definitely going to react to major sell volume as a lot of Stops will get automatically triggered for retail and algo's, nobody in value space bought this shit at these levels, and anybody else is going to see the broad sell signal and react to it.
Not saying there is no risk involved to trying to short the shit out of it since a small number of sellers wont drive the price down enough to really make shit blow up, but at the same time, this is not nearly the same thing as the VW/Porsche ordeal.
^ is this based on knowledge or speculation. As many people have pointed out, these share prices are NOT based on actual valuations on anything other than a far future share price. For these valuations (77x at current) to play out, on a risk vs reward basis, they wont even sell with a 10% spike. You DONT know what stops will get triggered by investors, and you can bet the earth that algo shops dont have any shares at all.
However, the important event in the VW/Porsche ordeal was not the major shareholder ownership, it was the sudden revelation of their new share status, which could DEFINITELY happen here.
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