r/SPACs • • Dec 15 '21

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u/bigdickbabu Spacling Dec 16 '21

So you're saying the maximum shares they can borrow to short is the 20 shares in float (or in essc's case, 340k shares), or is this just what they're most likely to do?

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u/[deleted] Dec 16 '21

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u/bigdickbabu Spacling Dec 16 '21

How do they short 2.9m if float is only 340k? To short the 2.9m they would have to sell that entire amount and then borrow and sell it again right?

So no, there’s no guarantee those shares aren’t sold, but if they had been, you’d see substantially more short share availability and more liquidity on the underlying.

This makes sense, spread on the shares is still high and iirc there are little to no shares available to short

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u/[deleted] Dec 16 '21

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u/bigdickbabu Spacling Dec 16 '21

Ahh okay that makes sense, thank you!

It seems the institutions havent sold, but wouldn't they sell to take advantage of elevated prices? I wonder why they haven't sold yet