Availability for Shorting

Discussion in 'Trading' started by jr07, Mar 17, 2010.

  1. jr07

    jr07

    Hi

    My broker, OXPS, rarely has availability for the stocks I want to short.

    Is this normal or does this feature vary from broker to broker?

    Also, since these are for day trading, I have a question about options. Can I buy a put and sell it a few minutes later, i.e. can you day trade options? This could be an alternative to the lack of availability for shorting.

    If the answer is yes, what is the ideal expiration date for choosing options for day trading?
    J
     
  2. Yes you can. Front month.

    But the spreads will eat you alive. Especially in options in stocks for which you are unable to locate any to short.

    You also have the issue of a delta lower than 100 unless you are deep in the money, in which case the spreads will be absurd.

    And let's not forget theta... and the list goes on and on.

    Find something else to short. You may think you are missing out on an opportunity, but NOTHING beats liquidity when it's time to get out.

    Just my 2 or 3 cents.