Oh NO ?? when the market is setting up to move with power. and they already havea built up inventory they will be less likely to grab higher prices to borrow(too risky) they are wanting to accumulate for the inevitable move up, as well less likely to go naked for the moment. So they entice their well placed little friends to assist so they can grab more on the cheap. The birds are chirping so you know they are hungry and mamma bird is hunting. Hot news can cut them short... Tony can let them run ... or restrain through new release. Depends on what bills are due.
Although naked shorting is more rampant today than ever despite some past changes. The SEC leaves it to the OTC. and the OTC and FINRA do absolutely squat about it. Others tell me it is still effective.
In any case you can use a much closer price but still one that would not be to their benefit. Perhaps a dollar. I would gladly take a fill at that price, but will not happen for a few months.
"In all, Finra identified 3,616 violations of Regulation SHO at KCG over the four-year period. The disciplinary action included “a censure,” a fine totaling $105,000, and the mandating of a written process to ensure future compliance with Regulation SHO within 60 days.
Oddly, it fell to Finra, an independent agency unrelated to the government, to enforce Regulation SHO — not the SEC, which implemented the rule and has oversight responsibility. Routine failures to deliver are supposed to lead to fines by the SEC, or even a ban from the securities markets."
