TLRY borrow cost reaches 900% a year

Discussion in 'Stocks' started by Daal, Jan 9, 2019.

  1. Daal

    Daal

  2. FSU

    FSU

    Crazy, yesterday I was assigned on 2 calls, that's 200 shares (was a hedged position, time spread). I bought it back today. The rate I was quoted yesterday was 650%, so I paid around $250 just to be short the stock 1 day!

    At 900% you are paying $2 a day, per share! So the stock has to fall 2 every day just to break even.

    This is causing some crazy pricing in the options as well.
     
  3. This does beg the question, when you start paying interest. I assume it's from the moment the counter party exercises...anyone know for sure?
     
  4. elt894

    elt894

    It's strictly whole days between settlement periods. The exact time of exercise doesn't matter. If you're assigned Wednesday night and cover Thursday morning you pay three days of interest because settlement crosses the weekend.
     
  5. Daal

    Daal

    TLRY largest holder just promised not to sell in the first half of 2019. Masterfully done, now shorts scramble to cover. Stock up $13 premarket
     
    Last edited: Jan 11, 2019