Stuck Short BUD

Discussion in 'Trading' started by NY0BScalper, Nov 18, 2008.

  1. So this morning in the AM, I instinctively shorted BUD when I saw it right near 70.00 level... presently short 6000 from 69.9546. Then, the stock got halted, and the news came out that the merger at $70.00 per share was completed.

    All day long it has been halted.

    If anyone is more familiar with these situations than I am, perhaps someone can let me know whether I will be able to cover within a reasonable distance of $70.00. It seems from the news that the deal is finalized and done... according to the news, the combined entity Anheuser-Busch InBev will trade on the Euronext exchange starting the 20th.

    What does this mean for me, and how bad is the damage to my account likely to be?
  2. FCCT


    Just under 5 cents, longs will recieve 70 cash, shorts will pay 70 cash, you difference is negative 5 cents.

    Similar to being short when a stock pays a dividend.
  3. FCCT


    Im pretty sure it was a 100% cash deal. The shares are gone now.
  4. Who were you able to "borrow" the 6,000 shares from this morning?
  5. My broker. Wasn't a problem. After your post I called to confirm the locate and borrow were legit; I got no response and left a message. I got a call back from the head of stock loan saying my shares were legitimately shorted and I would pay no fee.

    I *have* to learn to stop taking random BS posts on elite so seriously.

    What broker wouldn't let you "borrow" the 6,000 share this morning?

    Thanks for the positive vibes about my tough situation, Landis.