Peabody Energy Corporation (BTU)

[LouisDesyjr]

Congratulations, you just made 100% on the position

The prior posting lists announcement of the delisting. That will close out the short position.

You just made 100% on the trade, and the closing date, for tax purposes, will be the date the share are delisted and cancelled.

Years ago they did not consider a short sale position closed out when the stock was delisted and cancelled, so some market makers would short the short one or two days before it was expected to get canceled, so they got to keep the money, and never had to deliver any shares. It was possible to 'naked short' shares in excess of the shares that were outstanding since they would never be delivered.
The best part about that trade was that since the short position never got closed out, there was no tax due. As the years went on, the IRS enacted rules so that the trade was considered closed out when the stock could never be delivered to close the trade.

Louis J. Desy Jr.