by Katia Porzecanski & Tom Schoenberg
All he needs are three or four big, successful shorts a year to make ends meet.
A prominent short seller stands on a stage and unveils research on a target company. The stock plunges 10%, 20% or 30% before anyone has time to digest the report. By the time the public can debate the merits, the short seller has already closed out positions and is tallying gains.
He builds a position slowly over time, hoping to avoid attention as he shorts a mountain of stock equal to about 50% to 100% of its average daily trading volume. If his research causes the price to plunge, Block quickly locks in his gains, reduces his risk over the next few days and maintains a small bearish position from there on out.
Source: Bloomberg
https://www.theedgemarkets.com/article/ ... his-future
