They just banned short selling in US

Quote from aqtrader:

in china, all sorts of short selling is illegal. the market still keeps going down and down from the top 6200 a year ago to current 1800. downed 70%. still not see a bottom.....
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just as well

i heard that with chinese stocks, you'd short, but an hour later you'd feel like shorting again
 
Quote from mokwit:

How do we play this. If Options market makers can still short (as per before) then presumably puts will be bid up as they represent the only way to short?

Lets all start thinking out loud here.
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who will sell you puts? nobody - because there is no way to hedge his position...
option markets ceased to exist today...
 
Wasn't that precisely why Option MM's were exmepted? My assumption was that they would be again. If not, then what you say stands.

PS Thanks m22au
 
securities will now be allowed to stay overvalued without the mechanism to bring them closer to fair value. nice, this was the same cox that said legitimate short-selling was healthy to capital markets
 
Quote from mokwit:

Wasn't that precisely why Option MM's were exmepted? My assumption was that they would be again. If not, then what you say stands.

PS Thanks m22au
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are they exempted? then we have no problem: they will sell you puts with 1 day expiry and strike equal to a stock price...
 
Quote from dhpar:

are they exempted? then we have no problem: they will sell you puts with 1 day expiry and strike equal to a stock price...
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Yes of course :), after all they are not going to knowingly sell at a price that allows you to make money at their expense.
 
Quote from dhpar:

are they exempted? then we have no problem: they will sell you puts with 1 day expiry and strike equal to a stock price...
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I do not believe that they are exempted anymore.
 
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