Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
RJ: By Monday everybody had ample opportunity to learn about the attack and consider the ramifications. Any short sale (or other sale) that took place then had an informed seller that thought the stock was too expensive and an informed buyer that thought the stock was cheap. Who was right? Who knows. In the short term, maybe the buyer. Eyeballing the chart, it looks like if you shorted AMR at the open on Monday, as of now you've lost maybe 25% of your money.

Well, most firms would have allowed you to short on Monday in the interest of capitalism. Whether available shares existed, we'll have to assume they did.

All of this is disregarding after hours trading. You could have shorted and made quite a bit since both stock opened significantly higher on Tuesday. This suggests that after hours prop'ing, ahem buying
occurred. But that's another story...

AMR: Today: unchanged with a range from 21 – 18.5 (12%) last uptick at 9:40am. previous range: 20 – 16 (20).
UAL: Today down 1.2% with a range from 20 – 18 (10%) last uptick at 9:40am. Previous range: 20 – 17 (15%).

Now, it may have been risky, but it was certainly possible to make money on these stocks. Considering both stocks opened on Monday at 60% of their previous closes (really, they're eerily similar) you couldn't bet on making the real killing, but 15 – 20% ain't bad. Even if you went on the minimum round, you could have made 400 dollars.

Baloney. Unless this Iowan six year old is also a member of Al-Qa'edah, he doesn't get to short sell before the attacks. Look at the chart. UAL has been flat-to-slightly-up this week, no shorting profits there so far.

Do restrictions on short selling require you to maintain the short for at least two days? My six year old may have been dumb enough not to close his position, who knows. But it's possible, right?

Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.