the O'Shares ETFs co-founder said investors should be allowed to speculate freely — regardless of whether they end up losing their own money and regardless of whether hedge funds and other short-sellers get slammed.
The Reddit-sparked frenzy in GameStop and other stocks, which has consumed Wall Street in recent days, delivers lessons for people on both sides of the trade, O'Leary contended. He said he hopes hedge funds and anyone who shorts stocks will think twice about doing so, knowing they could be vulnerable to an epic squeeze like with GameStop. Shares of the embattled video-game retailer surged as high as $483 apiece this month; as recently as September, they traded around $6 each.
Short selling is a strategy in which an investor sells borrowed shares in hopes of buying them back at a lower price in the future. They return the borrowed number of shares and pocket the price difference, if the stock actually falls. When the opposite happens, a short seller may trying limiting their potential losses by purchasing the stock at its current higher prices.
Kevin OSmeary is an elite. Doesn’t mention the 200% naked shorting of GameStop! The shares become more valuable the longer the hedge funds can’t cover. If you hold indefinitely, the short squeeze amplifies... Moral of story: naked shorting can lead to infinite loss! GameStop
They need to be warned away from making money! It’s very risky being able to pay your bills! Your head might explode from massive valuation, that’s a real thing! Go sell some cameos loser.
One thing we learned that average investors can take their revenge on hedge fund managers.