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Playing & Trading Strategy

Not perfectly accurate, but.......

Posted by: srrichardson (a.k.a SCIFund) on Jun 06, 04:44 in response to MattW's post Kind of weird question about shorting when you have...

((Initial Price-Current Price)/Initial Price)*((Current Price-Expected Price)/Current Price) (i.e. Current change % * Expected Change %) will give you a rough percentage increase in your profit if you covered and then re-maxed on shorting as opposed to keeping things as they are.

It's hard to get a simple formula because the number of additional shares you can buy increases exponentially with the initial change %, so once you get to a 15% initial change commission doesn't really affect things significantly.

 





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