Short sellers lose up to $14.2bn in single trading day
26 November 2020 UK
Image: olly/adobe.stock.com
Short sellers lost up to £14.2 billion in one day of trading earlier this week across US equity markets as stock markets rallied following news that the US presidential transition was to begin, according to Ortex Analytics.
Total losses for short sellers so far in November are estimated to exceed $140.8 billion after the Dow Jones Industrial Average surpassed 30,000 points for the first time ever on 24 November.
The least profitable position for short sellers in November is Tesla – often referred to as the world’s most shorted stock – which is preparing to make its S&P 500 debut in December.
Ortex data shows that Tesla short positions lost £1.6 billion on Tuesday and are down £8.1 billion in the month to date.
Elsewhere, Alibaba, Nikola, Facebook, American Airlines, Microsoft, and Apple were among the least profitable short positions on Tuesday’s trading.
The most profitable short positions were in Wayfair, Zillow Group and Peloton Interactive, says Ortex.
Peter Hillerberg, co-founder of Ortex Analytics, comments: “For short sellers, a difficult month is quickly turning into a terrible one with losses almost totalling $141 billion in this month alone.
“However, despite the eye-watering figures at stake, November will be remembered as a turning point for investment markets.
“With optimism returning, an end to the pandemic in sight, and political uncertainty seemingly on the decline, the crosswinds that have so far defined 2020 seem to be abating. This is good news regardless of whether you’re going long or short.”
Total losses for short sellers so far in November are estimated to exceed $140.8 billion after the Dow Jones Industrial Average surpassed 30,000 points for the first time ever on 24 November.
The least profitable position for short sellers in November is Tesla – often referred to as the world’s most shorted stock – which is preparing to make its S&P 500 debut in December.
Ortex data shows that Tesla short positions lost £1.6 billion on Tuesday and are down £8.1 billion in the month to date.
Elsewhere, Alibaba, Nikola, Facebook, American Airlines, Microsoft, and Apple were among the least profitable short positions on Tuesday’s trading.
The most profitable short positions were in Wayfair, Zillow Group and Peloton Interactive, says Ortex.
Peter Hillerberg, co-founder of Ortex Analytics, comments: “For short sellers, a difficult month is quickly turning into a terrible one with losses almost totalling $141 billion in this month alone.
“However, despite the eye-watering figures at stake, November will be remembered as a turning point for investment markets.
“With optimism returning, an end to the pandemic in sight, and political uncertainty seemingly on the decline, the crosswinds that have so far defined 2020 seem to be abating. This is good news regardless of whether you’re going long or short.”
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