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Let's say the commodity you are talking about is gold, I know it's possible to work out the correlation coefficient of stocks with the price of gold as I have done it before on the entire stock market. That's when I found out that gold producers have the highest degree of negative correlation with the main indices. I wasn't actually even looking ...


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An alternative way to short a security is to create a Synthetic Short using its options, if they exist. This strategy utilizes two option positions. A short call is sold and the proceeds are used to buy a long put, both with the same strike and expiration. This combination has a similar risk and reward to shorting the underlying with the difference being ...


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Yes, short covering can raise share price above the offered buy out price. This occasionally occurs when the buy out price is significantly higher than current price and there's a gap up. If there are no other companies rumored to be possibly offering a higher buy out price then share price will correct down to the buy out price as new shorters come in, ...


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For instance, one source has the current market capitalization of QID at about $309 million but has the May 2018 market capitalization at about $267 million. The fund declined in price but more investors needing hedges came into the fund. Well, someone might buy the QQQ and write covered calls on it. Then they might hedge the position with the QID. Or they ...


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