BYND, Short call assigned on hard to borrow on Interactive Broker

Discussion in 'Interactive Brokers' started by Br1828, Aug 3, 2019.

  1. destriero

    destriero


    You're not the OP.
     
    #21     Aug 4, 2019
    taowave, Overnight and NQurious like this.
  2. Bum

    Bum

    There's a limited amount of equity (outstanding shares) available so to short you need to borrow the shares & pay the fee. With futures, new contracts are "created/destroyed" every day so if your order can't be matched with another trader/hedger then the order will create a new futures contract. Creating a new contract removes the need to borrow so no fee.
     
    #22     Aug 4, 2019
    traderwald likes this.
  3. neke

    neke

    The hope of huge gains. The put calendars do not offer the same multiples on amount risked.
    (When I tried, it was bear call verticals - got assigned more than once, and discontinued)
     
    Last edited: Aug 4, 2019
    #23     Aug 4, 2019
  4. zdreg

    zdreg

    Based upon the info the OP gave I calculated his approximate position.
    "The loan rate was approximately 1%/day. The 15k in stock loan fees suggests very roughly you were short maybe 72 options with stock value at roughly 1.5 million."
     
    #24     Aug 4, 2019
  5. Br1828

    Br1828


    70 contracts
     
    #25     Aug 4, 2019
  6. qwerty11

    qwerty11

    102% of value of stock......
     
    #26     Aug 4, 2019
  7. zdreg

    zdreg

    Thx for confirming my post.:)
     
    #27     Aug 4, 2019
    taowave and Overnight like this.
  8. destriero

    destriero


    Because of moneyness (where the fwd/synthetic is priced).
     
    #28     Nov 30, 2019