How do I bet a stock will go down?

[Goldy]

There are a couple stocks that I think will take a huge hit in the next 12 months and I figured there has got to be a way to invest in that. How do I go about researching the current short price and placing my bet, er, investment?

Do you know of any brokers who allow shorts on penny stocks? Most of the ones I am looking at have a minimum.

[rennigade]

google.com

[bjl584]

the put and call info for any given stock is readily available on the internet.

[kv968]

How do I go about researching the current short price and placing my bet, er, investment?

Do you know of any brokers who allow shorts on penny stocks? Most of the ones I am looking at have a minimum.

The "short price"is whatever the stock is trading at when you short it.

As far a brokers who allow you to short penny stocks, I doubt it. They have to have the stocks on hand in order to do so and since most trade on the pink sheets they probably wouldn't be available.

You may want to look into buying put options on the stocks you have in mind instead. Shorting a stock can cause I major world of hurt if it goes against you quickly due to being on margin.

[corn18]

Agree that options are less risky than shorting. With a put option, the most you can lose is what you paid for the put. But you can make a lot if the stock tanks. If you short sell a stock, you owe someone all the shares you shorted. If it tanks, you make money, If it goes up, you lose money and there is no limit to how much you can lose.

Any way you slice it, it is gambling.