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(24,383 posts)
5. To those that think they can sell short DJT or buy Put options easily,
Fri Apr 19, 2024, 02:11 AM
Apr 19

If you own shares of a given stock, the only way it could be loaned out to a short sale is if it is held in a margin account or a managed account that specifies it can be subject to loan. If you have a regular, vanilla investment account then any shares you own are not subject to this sort of transaction. Puts and short sales REQUIRE the ability to borrow shares from a margin or managed account from somewhere, to be repaid at a later date. That's how it works. You can not just simply sell short a stock out of the blue without a corresponding amount available to borrow. This goes for Options trades and regular short sales.

Short selling shares of DJT is currently limited or very expensive because of the limited float and the high premiums margin accounts are charging.

It isn't as if anyone can simply buy a shitload of Puts on DJT on the cheap and expect to get a massive windfall, or place a short sale on their account without holding the underlying shares.

It just doesn't work that way.

Latest Discussions»Culture Forums»Personal Finance and Investing»DJT Bull Trap?»Reply #5