Speaking of traps for young players of the stock market...
When you’re long (i.e. you own shares), the worst you can do is lose everything. But when you’re short (i.e. you have borrowed shares and sold them, with the objective of buying them back later at a lower price), everything and a lot more is at stake.
Joe Campbell should have known better, and in his own words, "I was holding KaloBios (a tiny San Francisco-based pharmaceutical company) short overnight for what I thought was a nice $2.00 fade coming,” he wrote. “At the close of the bell I saw the quote montage clear out and figured today there was no action after hours in the stock. So I went to my office for a long meeting. I got out of the meeting and saw a message from one of my buddy’s, he asked if I was ok since I was short KaloBios.”
Joe now owes Etrade US$106,445.56, as the share price of KaloBios went up, rather than down. From US$0.45 to US$16. Perhaps someone thought that Pfizer was going to bid for KaloBios...
And so Joe did what any Gen-Y person would do: ask someone else to pay. He pleaded for funds on GoFundMe. And raised US$5,000 from sympathetic persons. Only $101,000 to go, Joe.
How about the jargon: '..a nice $2.00 fade coming'. Or '...the quote montage clear out...' Good grief. And no sympathy from W&D for a person who... cannot correctly pluralise 'buddy'.
But he did tell his wife. As he needs her money to help pay Etrade.