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MTN

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R_
Occasional Contributor
Views on shorting MTN at current level. Thinking of shorting MTN by selling 4000 cfd's at current level. Current price increase is not sustainable?
8 REPLIES 8
Preston
Super Contributor
No, look at the activity on MTNSBM (call options).
Preston
Super Contributor
Maybe not a bad idea. Short at R162, exit at R167 , risk per share R5 amount you want to lose R2000 therefore 400 cfd. 4000 cfd's is bit on a risky side, I will not do that.
Preston
Super Contributor
Maybe not a bad idea. Short at R162, exit at R167 , risk per share R5 amount you want to lose R2000 therefore 400 cfd. 4000 cfd's is bit on a risky side, I will not do that.
kwagga
Super Contributor
Way too much risk in shorting this I think. Let's just say they announce that the terms of the fine has been finalized and it will be 10% of the initial fine ? This thing could move another 10% in two days. Remember the "buy on rumor and sell on fact" adage. If it starts to sell no fact (final terms) then short this.
Preston
Super Contributor
@kwagga, i agree. risk to upside outweigh risk to the downside at this stage. My reasoning if i were to short, is that MTN is hitting against overhead resistance of R162. Momentum to the upside is not driven by buyers conviction but rather the derivative
Preston
Super Contributor
@kwagga, i agree. risk to upside outweigh risk to the downside at this stage. My reasoning if i were to short, is that MTN is hitting against overhead resistance of R162. Momentum to the upside is not driven by buyers conviction but rather the derivative
SimonPB
Valued Contributor
r@ams, careful trading a stock in play .. any news could break and it could gap massively either way
Preston
Super Contributor
@r@ams, BTW, where is Daddy?