It is easy to short the stock, sell itm puts and you are going to be exercised due to the the high interest rate. Shorting the stock with a synthetic it is not optimal in this case. The extrinsic value in the put that you are buying will be much more than the extrinsic value of the call that you are selling.
Being assigned on the puts will make you long stock. No way anyone is going to exercise puts now. I am assuming that you mean sell calls and you will be assigned. This will get you short stock, but you will be forced to cover right away or will be bought in if there is no short stock available. The synthetic has the price of the short written into it. There is really no other choice if you want an almost pure short.
Ops yes, you are right. I 've got a lapsus here because I usually get assigned from the puts. This time , with BYND is the first time I have been assigned from my short irm calls. I am short a lot of BYND right now because of that.
Did your firm ask you to cover your short stock from being assigned? I was assigned last night as well and was asked to cover today.
The broker, IB, hasn't communicated with me. I am short a little less than 10,000 shares. However, in the Risk navigator tool, there is a little warning that says that the SEC rule 201 has been triggered . It says that short selling will be restricted from JUN 11 15:30 I really don't know what this rule is , and if they will be able to autoloiquidate my short positions.
That SEC rule is not a problem for you.... (because there's no relation between this rule and the possibility of a buy-in). The main problem is the short interest that's currently at almost 400% (of course this rate is indicative and can change by the minute).....................
You could just have sold calls........ I never understand the problem given options available (or are there brokers who don't allow to sell calls?).........