CHERRY, I read your post on the other board about
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Posted On: 04/14/2017 2:45:13 PM
CHERRY, I read your post on the other board about "locking" shares and Scott's limit. If you do it during trading hours, you can get it higher if you choose.
As I said over there and it is true:
For everyone trying to lock shares by placing a high sell price on their shares, the reality is, if you have a cash account, the shares are yours. They can't be shorted except by you. Yes, you can short your own shares.
For those that have margin accounts, maintenance fees could be as high as 100%. In other words, you need to pay the ASK price in order to short, especially with OTC stocks.
I have Scott and many years ago I was asked if I would lend my shares for some stock, can't remember now. Said no, so they couldn't borrow my shares.
Don't worry. As long as you have that cash account, your shares are safe.
I don't know where it is, but there is a list of stocks that you can short on the OTC, shares that are borrowable. If there are no shares to be borrowed, then regular shorts can't borrow shares. That simple.
Before you get ahead of yourselves, naked shorting only means that shares have not been delivered within the allotted time. Called Failure to Deliver.
Now as for MMs? They can be naked and all they have to do to cover is to sell or transfer them(the short position) to another MM and it's not reported as a failure to deliver since shares were in some form delivered to another MM. Google it, you'll see.
So what we have is a circular short position that can persist basically forever. So it is with every stock.
Failure to Deliver is naked shorting. Naked shorting can be covered by one party transferring the short position to another party(they have delivered).
OWCP has been shorted to the max. Till the company comes out with news, I suspect this may be ongoing. On Wednesday, about 45% of transactions were short sales. Yesterday dropped to 28% so some covered.
Until OWCP comes out with substantial news, the only thing to do is watch the charts and trade accordingly.
As I said over there and it is true:
For everyone trying to lock shares by placing a high sell price on their shares, the reality is, if you have a cash account, the shares are yours. They can't be shorted except by you. Yes, you can short your own shares.
For those that have margin accounts, maintenance fees could be as high as 100%. In other words, you need to pay the ASK price in order to short, especially with OTC stocks.
I have Scott and many years ago I was asked if I would lend my shares for some stock, can't remember now. Said no, so they couldn't borrow my shares.
Don't worry. As long as you have that cash account, your shares are safe.
I don't know where it is, but there is a list of stocks that you can short on the OTC, shares that are borrowable. If there are no shares to be borrowed, then regular shorts can't borrow shares. That simple.
Before you get ahead of yourselves, naked shorting only means that shares have not been delivered within the allotted time. Called Failure to Deliver.
Now as for MMs? They can be naked and all they have to do to cover is to sell or transfer them(the short position) to another MM and it's not reported as a failure to deliver since shares were in some form delivered to another MM. Google it, you'll see.
So what we have is a circular short position that can persist basically forever. So it is with every stock.
Failure to Deliver is naked shorting. Naked shorting can be covered by one party transferring the short position to another party(they have delivered).
OWCP has been shorted to the max. Till the company comes out with news, I suspect this may be ongoing. On Wednesday, about 45% of transactions were short sales. Yesterday dropped to 28% so some covered.
Until OWCP comes out with substantial news, the only thing to do is watch the charts and trade accordingly.
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