Quote from ak15:
I can't short any of these stocks without a pre-locate which delays things and a fees per share at my brokerage whom I shall not name,
Quote from Don Bright:
Actually worse than that. You must Pre Borrow, not just locate. Supply and demand will dictate what fees are charged based on what you request, not on what you use.
Hopefully this will only last a week....and, as far as the political ramifications of this....well, I guess I better not comment here.
Don
Quote from Don Bright:
As it stands now, you must "Preborrow" stocks before exercising puts, and even if you are auto exercised you must have already pre-borrowed.
Update for everyone: I got a call from Goldman this morning pre market. They have modified their eLocate to function as a "Pre borrow" for these 19 securities, which will our people to short these stocks (subject to the electronic paper trail of pre borrowing centrally through our office).
A "fail" in the same day of shorting can result in a fine to the Clearing firm, Broker Dealer, and down to the individual behind the keyboard as it stands currently.
If I learn more, I'll try to post more info.
Don
Quote from onthesidelines:
I think its time to look at using Single Stock Futures for Shorting.
Single Stock Futures ( SSFs) are an alternative to short selling and portfolio adjustments in investment strategies. SSF's are an agreement to purchase or sell an underlying security at a designated date in the future (the Expiry date). SSFs is a derivative product whose value is derived from the stock the need to locate stock when trading SSF is not required.