bullets for LU

Quote from limitdown:
unless they've changed the basic rules on shorting, such as making more short-exempt from the uptick rule,

the other requirements were (just off memory):

1) stock has to be above $5
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No it doesn't. It depends on your broker if they want to extend margin on a sub $5 stock. There's no rule saying under $5 stocks can't be shorted.
 
Ok..it seems you want to short LU..well another way to get short LU is to purchase a deep in the money put..It looks like the market in the Jan 06 7.5 strike puts is being made a dime around parity. 7.5-3.10=4.40...so if you pay 4.40 for this put it is pretty much synthetically the same as being shortl LU stock at a price of 3.10..plus if for some reason LU finds a cure for cancer and the stock opens one morning at $100 you will only lose the 4.40 you paid for the put...If LU slowly creeps down to $2.00 or so your put will gain in value basically the same as the stock will.....I hope this is helpful.....
 
you can short stuff that is pennies where I am at. it just needs to be on the easy to borrow list. LU NT CPN ELN are always on there but some stuff like AVR PRL EAG HEC are on there as well.
 
this is sort of off topic in terms of the thread but i have the same trouble initiating short positions intraday in ford, can anyone tell me how the uptick rule works with nyse if I want to sell the bid.
 
Quote from stock777:

Please, just pay me a dime for ever trader that thinks you can't short a sub $5 stock.

I'll retire on it.
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yeah, guess I had stale / old news on this issue...

glad to see it has changed, but evidently others too thought (were told the same from their brokers) the same...
 
Quote from dwl603:

this is sort of off topic in terms of the thread but i have the same trouble initiating short positions intraday in ford, can anyone tell me how the uptick rule works with nyse if I want to sell the bid.
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I can sell into the bid about 1% of the time I find... THe only time I can is in a scenario like this...

if 10.00 is the offer and I can currently short there and the offer pulls and the bid moves to 10.00 (with no trade taking place) then I can short into the bid at 10.00$...
I think this is the only scenario where you can short into the bid on NYSE (on non reg SHO stocks of course.....)

Please feel free to correct me if I am wrong...

matt
 
Quote from limitdown:

yeah, guess I had stale / old news on this issue...

glad to see it has changed, but evidently others too thought (were told the same from their brokers) the same...
More...

I can't even remember when you could NOT short a sub $5 stock, its been that long. Not even sure there was ever a prohibition against it.
 
Quote from mnx:

I can sell into the bid about 1% of the time I find... THe only time I can is in a scenario like this...

if 10.00 is the offer and I can currently short there and the offer pulls and the bid moves to 10.00 (with no trade taking place) then I can short into the bid at 10.00$...
I think this is the only scenario where you can short into the bid on NYSE (on non reg SHO stocks of course.....)

Please feel free to correct me if I am wrong...

matt
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The funny thing is some stocks allow crossing down into the bid and some dont in my experience. For instance as you know i trade EMC everyday, and i can cross down to the bid on any ECN or the specialist at any time. Im not sure why this is, but there is no restriction whatsoever about crossing down to short.

Other stocks that i trade sometimes (EP, L, GLW, NOK) dont allow this and lots of the time (NOK in particular), you can even short at the offer for quite a few seconds. Im not sure what needs to take place in this situation, but if the bid and ask move down 1 cent you cannot even place orders short at the offer. Maybe someone could clarify this for me.
 
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