What would the outcome be?

Discussion in 'Trading' started by ChaosNSX, Jul 29, 2008.

  1. I would like to get some collective feedback on a possible future scenario.

    Enjoy this journey into my mind as a speculative trader.

    Say you have an illiquid stock that a person knows is heavily illegally naked shorted. I am assessing preemptive moves to position those that will need to cover for max pain on the way out of these stocks. All this is to speculate on the SEC issuing in the near future a statement applying the enforcement of illegal naked shorting to the broader markets.

    My current thought would be to work daily to accumulate all available shorts, and issue morning street wide locates for large blocks to short in these issues. Keeping tabs each day where the stock was available and targeting those shares every morning slowly accumulating a list of which prime brokers have shares. The goal is to tie up the shares for delivery and corner the locates in these particular stocks once the rule is law.

    Comments, suggestions for more effective actions, thanks in advance.