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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by Marcel7on Jun 09, 2016 11:20pm
270 Views
Post# 24953304

RE:How can it be done

RE:How can it be doneHi Roller, They can hedge their position with options just as longs can. They purchase call options at various strike prices so that if the SP rises above that their losses are capped. So technically, they can still hold million of shares Short and be fully covered by options, in order for this to be the case though we would need to see more open interest, as the current total number of call options falls well short of covering the shares Short. In order make money off of options on a price spike however they would need to hold more call options than they have shorted shares. Marcel
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