GlobeCitizen
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BO, yes.請問 for NWBO case,
如果有BO announcement, all shorts need to cover?
但如果是partnership announcement, 那就不一定需要cover shorted shares ?
Partnership deal, depend on the deal's term particularly with whom the deal is signed, and also the carrying cost of the shorted shares, or the will and expectation of the short (naked). If the shorts also realize the trend has finally turned and the share price can only go up, there will be a short squeeze with lots of margin calls (the shorts will be forced to cover).
Under any circumstances, when the price goes up substantially and the shorts have no way to bring it down via short selling including naked selling because the demand is higher than what they can sell. There won't be any other way but covering and forced covering for the shorts -- squeeze.
In my mind, we will have one down the road, just a matter of in what magnitude!
GL