RE: Protection from short share calls
On Jan 30,97 I shorted 1,000 XCIT @ $15 5/8. Over the next 5 days,
the stock ran up to 21 5/8. Unpleasant, yes, but obviously the
result of a frenzy rather than anything of real value in the stock.
It came down as fast as it went up. Unfortunately, on Feb 10, my
shares were called and I was forced to cover at 15 3/4. Ouch. The
fact that XCIT has gone on to hit 8 since then hasn't improved
my appreciation of this experience. So, here are the questions:
1. Is there any way to protect oneself from a short call?
2. If I where to short a stock in smaller batches, say 5 sets
of 200 shares each in the example above, would they all be
called at the same time, or in batches?
3. Do different brokers borrow from different places?
4. Once a call is made on borrowed shares, is there any
other place to go and borrow shares to make up for them?
Thanx,
Kent |
