Shld 25d R/r

Quote from neveragain:

do you trade with a "PORTFOLIO MARGIN ACCOUNT"?? if not you should look into
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cant, my account size is not 100k yet to request PM. I will probably want to grow it to around 120k before do so anyway.

Tried to close the oct synthetic in the morning for +1 and switch to the oct ssf for a 2pt lock, but couldnt get out of the synthetic due to the spread. I tried for the mid price a few times but no luck. Now the gain is back down to +0.3 again, oo well.
 
Quote from atticus:

What roll? You short spot and buy the deferred SSF.
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The roll is not so much an issue any more with the EFPs as opposed to the SSF. But,

1) If there is a negative rate in the underlying, it will be reflected in the SSF
because SUSQ and Timber are making markets in them? How does that help you using SSF or EFP in REG-SHO? I am 99 delta that it is reflected there, just like it is reflected in the put.

2) What happens in case of a dividend announcement with SSFs and EFPs?

nitro
 
Quote from nitro:

The roll is not so much an issue any more with the EFPs as opposed to the SSF. But,

1) If there is a negative rate in the underlying, it will be reflected in the SSF
because SUSQ and Timber are making markets in them? How does that help you using SSF or EFP in REG-SHO? I am 99 delta that it is reflected there, just like it is reflected in the put.

2) What happens in case of a dividend announcement with SSFs and EFPs?

nitro
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Forget it, whoosh.
 
Quote from Don87109:

Here is a thread which may shed some light on the SHLD "free money" arb.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=132792&perpage=6&highlight=ssf&pagenumber=1

IB is showing a -35.50 indicative rate to borrow SHLD shares. I did some quick math and the free money doesn't sound free anymore. In fact I think it may cause a loss.

Don
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I'm not sure this sheds any light Don - looks like they're all as confused on that thread as everyone else.

Could you point out where you found the -35.5 indicative rate to borrow SHLD shares? And are you sure that means that out of nowhere that charge will appear on your statement? I just don't see any mention of any such thing on the IB website. Seems to me they would have to give you some warning - or have it clearly posted somewhere that this is what they're going to do. They don't - at least they don't have any such warning that I've been able to find, and I've looked pretty hard.
 
Quote from dmo:

I'm not sure this sheds any light Don - looks like they're all as confused on that thread as everyone else.

Could you point out where you found the -35.5 indicative rate to borrow SHLD shares? And are you sure that means that out of nowhere that charge will appear on your statement? I just don't see any mention of any such thing on the IB website. Seems to me they would have to give you some warning - or have it clearly posted somewhere that this is what they're going to do. They don't - at least they don't have any such warning that I've been able to find, and I've looked pretty hard.
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One of the posts on the first page of the thread gave instructions on how to get the rate from IB and also gave some info on interpreting the data.

Here's the link again:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=132792&perpage=6&highlight=ssf&pagenumber=1

You would think that IB would give some warning when the rate is that high, especially since such high rates are not common knowledge (judging by this thread).

Don
 
Thanks for the heads up. i think this trade might not work, unless someone can offer a bit more insight.

1) IB app -> View -> Account Management (webpage) -> Tools -> Short Stock (SLB) Availability
2) Symbol: SHLD, Exchange: ARCA
3) Current Indicative Rate -35.50
4) This rate is on the amount cash you received from the short if i understand correctly, but how is it calculated exactly with regards to your position.

If i shorted 1000x shld for $86,000. I am to pay 86,000*0.355=~$30,000 for the year? So if i held the short for 2 months, that's $5k to be paid?

Does anyone know how this works with IB?

:eek:
 
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