Author Topic: DISCA/DISCK - Discovery Communications  (Read 104771 times)

mwtorock

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Re: DISCA/DISCK - Discovery Communications
« Reply #240 on: Today at 12:03:17 PM »
WSB stock rally was about heavily shorted stocks, of which DISCA is one (about 30% of float shorted last time I checked). Why so much shorted? Maybe just a simple pair trade of long DISCK and short DISCA to explore the value gap? The rally might be driven by short covering or speculation of short squeeze.


peridotcapital

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Re: DISCA/DISCK - Discovery Communications
« Reply #241 on: Today at 01:09:48 PM »
WSB stock rally was about heavily shorted stocks, of which DISCA is one (about 30% of float shorted last time I checked). Why so much shorted? Maybe just a simple pair trade of long DISCK and short DISCA to explore the value gap? The rally might be driven by short covering or speculation of short squeeze.

In addition, retail traders and algo's that are trading along with them probably don't spend much time looking at the different classes and picking and choosing, so the A's might be artificially inflated.  I recently opened a pair trade, as a gap of this size seems unlikely to hold up longer term.