Short Sellers Are Reloading on Nikola, S3 Founder Says

The video discusses the dynamics of short selling, focusing on the case of Nikola, a company with significant retail investor interest. It highlights the risks and profitability of short selling, especially for institutional investors. The video also explores sector-specific short selling trends, particularly in biotech, and the impact of elections on market volatility. It concludes with a comparison between retail and institutional investors in the context of short selling.

What was one of the main challenges faced by Nikola that led to a significant drop in its stock price?

• High short interest

• Lawsuits from investors

• Product recalls

• Departure of its CEO

Why is short selling considered a risky strategy?

• It has unlimited risk potential

• It is only profitable in a bear market

• It requires a large initial investment

• It is illegal in many countries

Which company was used as an example of a stock that experienced a significant price increase, illustrating the risks of short selling?

• Nikola

• General Motors

• Tesla

• SpaceX

In the biotech sector, which group of companies did short sellers believe would be the 'COVID winners'?

• Mid-sized pharmaceutical companies

• Small NASDAQ biotech firms

• Large S&P biotech firms

• Startups in the NASDAQ

What is considered a good proxy for market volatility, especially around significant events like elections?

• Cryptocurrency

• Oil prices

• Gold

• Interest rates

What has been the trend regarding retail investors and short selling in recent months?

• Retail investors are dominating the short selling market

• Retail investors are increasingly participating in short selling

• Retail investors are avoiding short selling due to high risks

• Retail investors are only shorting large-cap stocks

Why do institutional investors typically handle short selling?

• They have more capital to invest

• They are required by law to do so

• They can manage the high risks involved

• They have access to better market data