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This is why derivatives exist. Futures and options are easy to trade and can easily get you into a position of being short/long whatever you want.
by harmegido 13y ago
This is why derivatives exist. Futures and options are easy to trade and can easily get you into a position of being short/long whatever you want.
- tanzam75 13y agoWhen a stock becomes hard-to-borrow, the options will become more expensive. The theta will be equal to the accumulated interest charge until expiration. Options can give you access to short-sales if your broker cannot locate shares to borrow. But in that case, what you need is not options, but a broker who participates in the securities loan market. Options will not provide a "free lunch" over simply borrowing the shares. Of course, options do have the benefit of a truncated payoff. That's one thing you don't get with simple shorting.