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Politics : A Real American President: Donald Trump

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To: GUNSNGOLD who wrote (260018)1/28/2021 1:16:17 PM
From: Thehammer4 Recommendations

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Honey_Bee
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Well for once someone has figured out how to manipulate it for the little guy.

I'd suggest that any little guys do a couple of other things. If you have the shares in a margin account, move them to cash so they can't be borrowed. Cancel and lending agreement on this stock. I know some of the brokerages are paying clients to loan fully paid shares.

This will cause firms to recall loans and further add to the short squeeze momentum. I don't know if MF can loan their shares but I imagine they can.

One of my first tasks was to okay requests to short at the firm I worked.

A lot of things have to happen to provide a source of shorted stock.

The stock has to be held in a margin account with a debit balance.
The firm can loan 140% of the debit balance (i.e. if you borrow, 100K , they can loan 140,000)

The shares loaned have to be over "custody and control" this means that fully paid for shares have to be segged and are not loanable". The shares have to be help in certain locations and not as a fail. It is a little complicated but the excess over the custody and control requirement can be loaned.

There used to be a concept called short versus the box. You could open a short position versus a long position and essentially trade it. If you expect a decline and it happens, you close the short and your holding period remains intact. If it goes the other was, you just close out both positions. It was a great trading vehicle ....
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