this post was submitted on 06 Nov 2025
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You can keep a short position for a long time, as long as you can maintain margin, which gets bigger if the stock price continues increasing, and pay margin interest - there is no set date when the short has to he closed, it's indefinite. Sometimes the lender who loaned you the stock can ask for it back, and if you can't locate any more shares to borrow to replace the returned shares, you might be forced to buy the shares back and close the short, but this is not common, at least during normal market conditions.
His company bought puts. They are less risky, because you don't need to maintain margin. What you pay to buy them is all you can lose.