Matson125 Posted February 7, 2009 Share Posted February 7, 2009 If anyone wants to short any shares of Sears it costs you 38% per year to short their shares. Take a look at the video http://online.wsj.com/video/heard-on-the-street-no-shorting-sears-stock/E27FE361-0439-4FA4-BC7C-96B199259521.html I am a Canadian and own shares in a margin account with Etrade, is there anyway for me to take advantage of this? Have my holdings converted out of street name? Thanks Link to comment Share on other sites More sharing options...
decipher Posted February 8, 2009 Share Posted February 8, 2009 options do not have that high a premium. Why the discrepancy between shorting and options? Link to comment Share on other sites More sharing options...
Uccmal Posted February 8, 2009 Share Posted February 8, 2009 Someone please correct me if I am wrong here. I believe you need to move your shares into an all cash account i.e. not a margin account. Then your broker is required to pay you the money for the borrow. 38% seems really high. I guess people are sure it is going to go bust and fast. That 38% will disappear your short profits if they stay solvent for 24 months and then go bust. Sears going bust wouldn't surprise me at this point. There is only so much ESL can do in this environment. Link to comment Share on other sites More sharing options...
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