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Technically not. Shorts have a borrow fee, and if you trust the wsb guys on this number, the current borrow fee on gme is 80 percent per annum. So if I'm not getting anything wrong here, short sellers do have a bit of a clock.



Yes, but I think hedge funds will easily be able to cover that cost on new short positions basically indefinitely.


Does 80 percent per annum mean that carrying the short for ~9 months will cost roughly the same as closing it out today, assuming the price remains constant for the next 9 months?


It means your broker will charge you that carry cost on a pro rata basis, assuming borrow also remains constant. (It's generally not a fixed rate.)

So if you carry a 9mo short with 80% borrow rate on a stock that realizes 0 vol, you played yourself.

If you don't want to deal with borrow, you can buy a put and sell a call on the same strike (usually slightly higher than ATM) which comes with an implied borrow rate that is locked in.


Probably not. Perhaps if the brokerage blocks didn't cap their momentum allowing the earlier shorts to get out at 120




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