I invest in real estate somewhat conservatively purchase and hold. I have done some wheeling, but other than that, it is all quite simple. I believe I have found an expensive stock that will eventually crash—perhaps not in the next few months. Although I don’t want to delve into it, I have heard about shorting. Is it better to approach this this way, or would purchasing long puts be a smart strategy to profit from this?
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For popular stocks, there may be inverse leveraged ETFs available. Currently, I am investing in TSDD below $9 because I believe TSLA is overvalued. The key with these investments is to continue buying during dips, or the rebound might either be very slow or not occur at all if you bought at too high a price.
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I am not a rocket scientist, but I have a strong feeling that Boeing is the subject of your discussion. Perhaps there are some bolts missing from my supposition, and it will come crashing down. If so, I can definitely offer my help on the upcoming one-way space ticket.
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Why not just say it’s NVIDIA? You can buy a 2x short leveraged ETF called NVDD.
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Since NVDIA really produces a product and makes money, I like them. Is it overpriced? Perhaps, but there is a concrete element present.
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Essentially, he doesn’t own the stock and actually wants to short it, but he’s hesitant to do so because of…
Wait, what is the reason you’re hesitant to short it?
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Shorting expenses are incurred because it may take some time for this company to be proven to be a bad business.
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Got it. If it is Nvidia or AST Space Mobile, it seems that shorting is the primary method to profit from overvalued stocks you don’t own. That does not mean there aren’t other strategies out there.
Be patient and wait for the right moment to short it. Meanwhile, there might be alternative approaches, keep researching and exploring.
I will be keeping a close eye on those two stocks as well.
Many people made substantial gains by shorting and capitalizing on others’ optimism, particularly during 2008.