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Re: Drugdoctor post# 101651

Tuesday, 08/09/2011 10:48:03 PM

Tuesday, August 09, 2011 10:48:03 PM

Post# of 107353
Cargo Hauler

So lets assume you have an offshore account somewhere that would allow you the ability to short a stock such as this without any shares to borrow (despite the fact that there probably are shares to borrow at any given time http://www.interactivebrokers.com/en/trading/ViewShortableStocks.php?cntry=usa&tag=United%20States&ib_entity=llc&ln=&asset=&b=DIN&e=DRC )

You somehow managed to "naked short" exactly at the 52 week high? Assuming all the share volume at .14 was you then that was a total of 30,962 shares or $4,334.68 worth of stock.

At .08 that means you would have profited $1,857 which all sounds pretty good until you consider that even Interactive Brokers charges a $2.50/share maintenance margin requirement on stocks less than $5/share (http://www.interactivebrokers.com/en/p.php?f=margin&p=overview3#1a) which when you put it all together means:

You somehow nailed the top and all the volume was your "naked" short. You shorted $4,334.68 worth of stock and are currently up $1,857 (woohoo!) and ALL that it took you to do that was to freeze up $77,405 (30,962 * $2.5) for the required maintenance margin.

Great job

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