Dont know much about how it works but cant imagine it was very much if the stock only dropped from 5.7 to 5.4 and his stake was only £65,000
(, Fri 21 Apr 2017, 10:13, Reply)
he wasn't what you call a great trader. Bombing buses isn't alpha. It's just leverage in a short skirt.
(, Fri 21 Apr 2017, 10:18, Reply)
So maybe around £3250 to the good, which I'm not sure would cover the cost of the transaction or other charges.
(, Fri 21 Apr 2017, 10:25, Reply)
I suspect he was expecting the boom to be more big badda boom and the price to drop further.
(, Fri 21 Apr 2017, 10:27, Reply)
(, Fri 21 Apr 2017, 10:34, Reply)
(, Fri 21 Apr 2017, 10:49, Reply)
Your stake is basically the maximum you can make. You are selling shares someone else owns at today's price with a promise to buy the shares back within a certain time period and hand them back. You then trouser the difference.
The most he could have made was 65k.
(, Fri 21 Apr 2017, 10:36, Reply)
Under such extreme circumstances I think the deal might just be null and voided in the small print.
(, Fri 21 Apr 2017, 10:40, Reply)
Seems like a huge amount of effort and risk for a maximum potential gain of 65k.
(, Fri 21 Apr 2017, 10:46, Reply)
Anyway, this game is about yield not the pound note figure.
(, Fri 21 Apr 2017, 10:51, Reply)
(, Fri 21 Apr 2017, 11:00, Reply)
In this case he was trading options contracts - which are leveraged anyway - and probably trading on margin so perhaps a tenth of the contract up front.
(, Fri 21 Apr 2017, 12:06, Reply)
What I meant was he had no capital at all so he took a loan to even get the deal set up.
(, Fri 21 Apr 2017, 12:19, Reply)
He should have just mugged old ladies coming out of the post office.
(, Fri 21 Apr 2017, 12:28, Reply)
Frankly it all sounds rather implausible. I very much doubt he was short selling. He was probably spread betting.
(, Fri 21 Apr 2017, 12:33, Reply)