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this post was submitted on 26 Mar 2024
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The opposite of shorting a stock is buying a stock.
I'm not sure about that. I thought shorting was a promise to buy the stock for someone in the future, in return for the price now. That way if it goes down you make a profit. The real opposition of buying is not buying. Or maybe buying the compeditor.
You are describing a put option, a contract to sell the stock at the end date for whatever price is in the contract. The opposite is a call option, a contract to buy the stock at the set price.
Shorting and puts are a bit different. To short a stock, you borrow the shares and sell them today, then need to give back shares at a later date to the person you borrowed them from.
The opposite of buying is selling. When you buy, the price goes up and when you sell it goes down.
Normally you buy a stock before selling it. The opposite is selling a stock before buying it, which is known as shorting the stock.
Maybe this is worded funny, but you're close. You sell it for it's price today and then buy the same amount in the future for whatever it ends up being worth.
Shorting highly volatile securities is way more risky than shorting established low risk stocks. You could be on the hook for way more money than you're able to pay back and since the value of DJT right now is completely unhinged it's not subject to predictable market forces, industry trends, or conventional wisdom. It could go up to double, WSB could try a short squeeze, who knows.