It has been a roller-coaster ride for Cannabis short sellers after going through a series of losses and gains in just a couple of days. Hundreds of millions were lost during the midterm elections before subsequently getting most of it during the sell-off the following day.

According to information from S3 Partners, a financial analytics firm, pot shorts lost a total of $292 million dollars last Wednesday. Stocks climbed subsequently after the midterm elections in the US. Most people in the cannabis industry see this as a positive outcome. The news about Attorney General Jeff Session’s departure, who is a known anti-cannabis advocate, gave the stocks an added boost.

Following the losses from short-sellers and in the wake of Session’s resignation, they gained a total of $265 million back on Thursday. The following Friday, the stocks continued its descent with Horizons Marijuana Life Sciences Index ETF down to 5.8%.

Short pot stocks remained expensive costing in an average of 13.4% borrowing fee. According to S3, pot stocks are at 38% for Tilray Inc., 42% in Cronos Group Inc. and 50% at The Green Organic Dutchman Holding Ltd. During the mid-year, $1.4 billion was added to the short interest in cannabis, making it a total of $3.35 billion.

The newly elected Democratic majority in the House of Representatives resulted in high hopes for the increase in sales of legalized marijuana in the US. So, everyone should anticipate more occurrence of an instability in cannabis, as the world saw this week. High volatility will entice more cannabis short sellers to go in and out of the market due to the rise in stock prices and high hopes in the days to come.

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