Shld 25d R/r

Is trading 1500 bp otm put/call on the 75/95 strikes. There is a persistent rumor that credit was pulled, but this rumor is months-old.

 

Last week I did the Oct. 85 reversal for -87.75, a theoretical lock of 2.75. I just did a one-lot, as the point was mostly to see if I could hold it until expiration and book the profit. And the romantic in me wanted to believe that somewhere in America, there IS such a thing as a free lunch!

So far so good. Yesterday IB showed 0 shares available to borrow, and I thought I'd get closed out. But today they show 90,000 available shares, and I still have my position. Someone on another thread thought I'd get charged a high borrowing fee, but I haven't seen any evidence of that yet.

 

Good on ya, dmo. I shorted 5k spot with no trouble via IB. We'll see.

 

market is at -86.44 now...good for u

 

I didn't really think I'd come out ahead on this - I was mostly just curious to find out what would go wrong.

If it hadn't looked so good, I would've done more!

 

Anyone know of any one/off dividend approaching on SHLD?

 

75P Seps went out at 59%.

 

this seems too good to be true and i am even using market fill. what's the catch?

 

Here are the only candidates I can come up with:

1. The stock becomes unavailable to borrow and you get unceremoniously closed out of your short stock position.

2. There is some dividend coming up.

3. Your broker will hit you with a surprise borrowing charge that exceeds your profits.

Anyone else?

 

Sep is netting a buck or so on the reversal.