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A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock. (www.theverge.com)

submitted 8 months ago by L4s@lemmy.world to c/technology@lemmy.world

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A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock.::Reddit seems like a likely candidate for a meme stock. But the actual reaction suggests that r/WallStreetBets isn’t going to send the stock to the moon.

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[-] merc@sh.itjust.works 16 points 8 months ago

Yeah, if there's a "Superstonk" style event, the shares might jump to $1000 per share.

Say you shorted 100 shares. If you shorted it at $30, the absolute maximum you could make is just under $30 per share, or $3000. But, if it jumps to $1000 per share, you would lose $970 per share, and owe $97,000.

Maybe it's not technically possible for there to be "no upper limit" to what you could lose, but you could easily lose many multiples of the maximum possible gain.

this post was submitted on 24 Feb 2024

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