KMPH Live Chat

Dont give up hope we just need to figure out how this shorting works i have been reading and figuring out. Fintel shows 33% of the available shares for the day were shorted and borrow rate was over 84% borrowing fees on the surface this borrowing fees looks expensive but if you borrow 100 shares at $10 10x100=1000 x85% equals 850 divided by 365 days equals $2.33 cost to borrow 100 shares so now divide 2.33 by 100 its only .23 cost to borrow per share for the day so if stock drops .50 cents on the day and the shorts cover they make 100% return for the day. The short fees are only applicable if you dont close your short position that day so no fees applies if you are day shorting. Offcourse the reverse is also true if price goes up they can loose 100's of % in a day if dont cover at right time. I dont short so just learning how this works because we need to figure out this not just for this stock but helps in other stocks as well.

/r/KMPH Thread