Short status: unavailable (red)

d08

d08

What's the rationale behind this? Apparently locates are not even sought. Is there a regulatory limit or is this IB's risk management at work?
 
I have no idea.
Saw it on SPRT.

Locates habe tried up on this one, other brokers charging 1$+ per share on locates.

You can still short (D)ITM calls
 
Was also looking at SPRT, it happens regularly on high vol biotechs. I'm still curious what the reasoning is, I'm fine with whatever fees there are but outright disabling shorting is bothersome.
 
d08 said:
What's the rationale behind this? Apparently locates are not even sought. Is there a regulatory limit or is this IB's risk management at work?
More...
I'm also getting this... can you spell this out for me?

1. What does this it mean?
2. How can the IB fee rate be 163.41%?
3. Schwab's borrow rate is much better... maybe sign up for their brokerage services? I'm seeing 136.75%



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kmiklas said:
I'm also getting this... can you spell this out for me?

1. What does this it mean?
2. How can the IB fee rate be 163.41%?
3. Schwab's borrow rate is much better... maybe sign up for their brokerage services? I'm seeing 136.75%



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View attachment 267109
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The daily interest is 163%, nothing impossible about this. Borrow rate is irrelevant when the status is red and no shorting can be done.
 
d08 said:
The daily interest is 163%, nothing impossible about this. Borrow rate is irrelevant when the status is red and no shorting can be done.
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- Short Sell 100 SPRT@31.25
- total price $3125.
- Short interest: 163% of $3125 is $5093.75
- Annualized at 360 days is $14.15/day.

Correct?
 
First things first...IB had no inventory of SRPT to lend out to short, this normally results in the faded green no shorts available...Thats issue number 1.

Issue number 2 is that IB doesn't do locates for everyone. You need to have a portfolio margin account.

Issue number 3 is that at times IB flat out bans shorting on certain crazy stocks (ie. the red not shortable status)...this is done to "protect" customers
 
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El_Cubano said:
First things first...IB had no inventory of SRPT to lend out to short, this normally results in the faded green no shorts available...Thats issue number 1.

Issue number 2 is that IB doesn't do locates for everyone. You need to have a portfolio margin account.

Issue number 3 is that at times IB flat out bans shorting on certain crazy stocks (ie. the red not shortable status)...this is done to "protect" customers
More...

SPRT (support.com), not SRPT (sarepta). Yeah, it looks like it was a straight up ban on shorting to "protect" us, never mind that some of us can protect ourselves and these protections are just costing money.
 
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