Questions tagged [short-selling]
The short-selling tag has no usage guidance.
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Can you hedge against a short squeeze with call options?
https://finance.zacks.com/high-short-interest-ratio-potential-sizable-short-squeeze-3371.html claims you can hedge against being squeezed out of your short position by buying call options with a ...
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Simple concepts around return, VaR, etc
In a simple setup, let's say $(w_1,w_2)$ are weights invested in assets $1$ and $2$ with prices $S_1$, $S_2$.
I only saw discussions when $w_1 + w_2 = 1$, even if short selling is allowed.
Suppose $...
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Arbitrage between gamma and delta on smaller timescale in options selling
I have observed that sometimes (mostly for OTM options) near expiration, an increase in option price cannot be fully explained by delta and theta(given volatility is constant). The gamma spiked the ...
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Does FINRA have an FTP dump of historical short interest? [duplicate]
I am interested in downloading historical short interest data from Finra for analysis but I cannot find where they keep dump files. They have the data for OTC companies but not for all of the ...
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Are risk-free-rate bonds and cash fungible?
I had a thought experiment: suppose you wanted to borrow an equity security from me (perhaps to short sell it). I ask you for collateral and a borrow fee, and in exchange you get the stock.
If you ...
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Gamma squeeze - mathematical explanation
I am trying to understand from a mathematical and financial point of view the mechanism behind the so-called gamma squeeze. Is there a good source to read about this/ My questions are:
what are the ...
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234
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How to correctly explain the current price action in a trading chart with the Hurst Exponent found?
I watched this video tutorial to learn how to estimate the Hurst Exponent using an Excel spreadsheet and a time series sample of 1025 data.
I decided to use futures 1H markPriceKlines data from ...
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What limits the maximum possible returns when shorting crypto?
I'm new to finance and crypto and this question is more of a thought experiment so I would like to hear both theoretical as well as practical considerations. Suppose I would like to short a particular ...
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Is it possible to short publicly traded mutual funds?
I'm curious whether it's possible to short mutual funds in any way? I have given it some thought and I guess that in principle, it is possible using a total return swap. However, I'm sure that the ...
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How do financial analytics firms estimate the earnings from short sellers on an ETF or stock?
I read on https://www.reuters.com/markets/europe/russia-etf-draws-meme-stock-like-trading-frenzy-2022-03-02/ (mirror):
The ETF's tumble has been a boon for bearish investors. RSX shorts are up $299 ...
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Theoretical returns are not matching empirical ones in my backtest
I'm trying to implement a Backtest for my quant strategy but the calculated theoretical returns are not matching the returns from my implementation. Here's the example:
On a given day I have 1 million ...
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327
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Strategies for trading on a forecast
I have been experimenting with multiple methods of forecasting the daily high and low for a certain security. I have found a very basic ensemble of several common forecasting approaches is, well, ...
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Is it possible to calculate logarithmic return for short position? [closed]
In the book "Python for Algorithmic Trading" by Yves Hilpisch,
it calculates the logarithmic return by summing up all the log values.
When calculates the profit for long position: log(...
- 109
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118
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Maximum Adverse Excursion Formula - Short Trade Position?
Is the formula for the Maximum Adverse Excursion for a Short Selling Trade the (Open - High) / Open, or (High - Open) / Open ?
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Basic stock shorting question [closed]
So im just a little cloudy on how shorting a stock drops the share price. I understand that you borrow, or set aside shares from your brokerage to then buy later at the origional price. My guess was ...
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