I tried to short FRC today after a huge run up but there were no shares to short. I don't think I have ever encounter this as I am mostly long. I checked after 5 min , there were still no shares to short but FRC didn't drop much maybe 2%. I thought it would drop as there were as many shares shorted as there were available. So , does no shares to short have any practical application in trading? Can this info be used to get some edge? Thank you.
If you really want to short, but shares are HTB or NTB (or even if ETB), you could use synthetics. They are more handy when you know how long you want to remain short. For example, you thing you may need a month or two, and expect price to drop below 45, you could do this for a small credit on entry, and exit with a credit when it reaches your target.: SELL -1 COMBO FRC 100 19 MAY 23 45 CALL/PUT @3.85 LMT MARK,
FRC is ETB at TradeZero, but if it weren't we would have ample supply of locates or preborrows as we generally do on all names above $1. www.tradezero.com
And I forgot to mention.... when you are done with your locate or preborrow you have the ability to "mark that locate or preborrow for credit" so that TradeZero can reallocate your locates to another TradeZero client, and recoup a portion of your initial locate cost.
%% I THINK it provides a clue, for me . Meaning what, beside single stock risk?? WELL if i think FAZ[inverse ETF , profits off bank bears] looks to expensive today + i dont get filled on FAS/running upside; I can either not buy FAZ \ or trade a bit of XLF, which i did. Or put another way even ifits a CA badly mismanaged bank , like charts suggest; bank real estate may be worth something?? Wisdom is profitable to direct.......................................................
no shares available to short = short-squeeze candidate over at reddit. expect surging prices. caveat emptor. required reading: gamestop, amc, etc.
What a fake-out. All those regional banks were way up in pre-market and just as soon as the market opened they all basically crapped the bed.
The whole #nakedshorting #moass #PFOF thing is confusing, seems like the rules don't apply to major players like Citadel, Virtu et al. Upon reading this comment, didn't realize the U.S. markets are the only one that allows #PFOF. https://www.sec.gov/comments/s7-08-22/s70822-20127538-288680.pdf