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> Disclaimer: I am short $TSLA since about 2 weeks ago How/where did you get shares to short? At what margin interest rate are you having to pay?
by MuffinFlavored 6y ago
> Disclaimer: I am short $TSLA since about 2 weeks ago
How/where did you get shares to short? At what margin interest rate are you having to pay?
- sokoloff 6y agoEtrade. It isn't even listed as a "hard to borrow" security (just confirmed that by entering a proto-order and confirming another security that is hard-to-borrow does give a warning at that point in the flow). Per that, I'd imagine any brokerage would allow you to short them.
- arthurcolle 6y agohe's probably using puts
- sokoloff 6y agoNo. I'm outright shorting the shares. Implied volatility is so high now as to make buying options fairly unattractive for medium and long-term bets.
- MuffinFlavored 6y agoSay you want to short $10,000 worth of TSLA shares, what kind of margin interest rate are you paying? Is it 8%/yr?
- sokoloff 6y agoI've held the shares short for short enough time that I haven't gotten tagged with any charges yet to give you actuals. The interest is super-low in any case, so when you're shorting shares that have moved parabolically, you're probably not worried about whether the borrow is 1% or 4% per year (or at least I'm not).
- arthurcolle 6y agoYou could be using spreads to hedge out the vega risk, not a huge deal.