RE:Warrants, Broker Options and Shortsgood post Rube.
But as I understand it, brokerages want 150% of stock price to cover in case the stock rises after shorting. So I would say step 3 cant work. But then I have never shorted. Shorting a penny stock is plenty stupid so I wonder why I never tried?
Some high flying biotechs were lovely shorts, like Dendron. However, it continued to rise before substantially even after the odds looked extremely favorable. It did crash eventually but it would have killed me, even being right, had I shorted.
TST shorters beware ...uh no I mean, SHORT THIS LITTLE PIGGY .