Have learned heaps of things over the past one week, due to the heavy loss of my speculative account for shorting the three EV stocks. Such a move is out of my fundamental belief that these stocks are way too overpriced, and got too much squeezed within such a short timeframe, to an extent that cannot be sustained, and must be cooled down whatsoever.
Even though the concept of clean energy vehicles is consistent with our time, it still needs a proper growth curve and path. Fierce price squeezing by institutions and frenzied investors will do nothing good but cause hugh loss of investors.
However, I must have shorted these stocks too early, and without a proper position taking. I underestimated the frenzy. The expiry date of my share options will be 18 Dec so I still have four weeks to cover the loss.
My strategy is to hedge my investment with out-of-the money long calls, one batch every week until making even. Meanwhile, I will long 1 or 2 selected 52-week-high stocks, hopefully to gain some profits to cover my heavy loss position.
Good luck.
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