Shorted RFX... Hmm.. Now what?

Discussion in 'Stocks' started by tnewman1, Oct 17, 2005.

  1. tnewman1


    Hey gang,

    Here's a question I'm hoping a veteran trader can answer.

    Here's the situation I'm in.

    I shorted RFX last week at 10.30.

    As now everyone and their mother knows, the stock is halted.

    Here's a question for this short..

    What happens to my position if this stock is delisted? Does it go to the OTC market and I buy back the shares there or???

    What happens if this stock disolves? Disappears? What about my trade?

    I was just curious, I've never been in this position before. I'm sure there are longs in RFX that want to get out before they lose everything if RFX goes under. If the NYSE starts trading it, no big deal, then I can trade, but what happens if this other stuff materializes?

    Any thoughts? Thanks in advance.
  2. if it gets delisted, then it will trade on the OTC market, and you will be able to cover it there.
  3. You think maybe it would be a good buy when it gets onto the OTC considering a lot of shorts will cover and squeeze it higher--albeit very short-term.
  4. I just had a quick look at interactivebrokers website and it looks like you can't be short a stock if it is below $2. You could look to buy around that price but make sure your nimble enough to get out quickly as if it goes to two it could go to zero.
  5. A: there are other brokers besides IB out there to trade stocks

    B: were there shares to short in RFX?

    I thought that it is not possible to short a stock so soon after its IPO ?

  6. tnewman1


    Well I was able to short RFX the day before it was halted. I shorted it late in the afternoon, the next morning, it never really opened.

    I'm stuck now because the NYSE halted the stock. I have to call the brokers on this one because I've never been in a situation like this where the stock could be potentially delisted, or wiped out completely.

    I shorted 1500 shares at 10.30 and would like to make a profit on the short side. I'm real curious to see if I hit a homerun or not.
  7. ig0r


    Assent had shares for somethin like $0.04 cents, there was quite a few shorts out
  8. tnewman1


    Quite a few shorts out? What do you mean? Or could you explain?

    REFCO just announced they filed for Chapter 11 according to the Wall Street Journal.
  9. You made at least 10k dude, nice job.
  10. tnewman1


    We'll see, I think I made some money but when this thing finally trades. I guess I got lucky, so far..
    #10     Oct 18, 2005