If you are on an electronic platform, you just press "sell".
If you have a human broker, you say I want to "sell to open" xyz call option. Make sure to let him know it is covered by stock if that is the case.
That's it.
NB If you're selling naked calls, you will need trading permissions.
Hey WayneL ... I noticed your mood has been getting worse and worse...old age or the markets ?
Or maybe it's just the gold bug venom...But could be grumpy old man syndrome creeping up on me
After a couple of very ordinary months, I had my best week ever last week.No its not a ban on short selling. Its a ban on Naked shorts.
Wayne you must of had a couple of good weeks
I normally get accused of being grumpy here when I'm most profitable
I think its because I lose patients with the fools.
After a couple of very ordinary months, I had my best week ever last week.
The FSA here in the UK and then followed by the SEC in the US has banned ALL short selling on financial stocks, not just naked.
I remember this was done so as not to scare the general public from taking out their deposits and putting it under their beds!!
No matter if it was not really due to short selling --- but that was what the mass believed and authorities have implemented this to calm down fears
Not optimal I must say!!!
I remember this was done so as not to scare the general public from taking out their deposits and putting it under their beds!!
You can't put your money under the bed, that's where the Fed is.
(Updated saying).
No its not a ban on short selling. Its a ban on Naked shorts.
Wayne you must of had a couple of good weeks
I normally get accused of being grumpy here when I'm most profitable
I think its because I lose patients with the fools.
Well... it's a total ban now.
Is there any reason at all to be in the options market at this time?
So does anyone know what the actual implications are for options in the Oz market?
according to the latest asic release, authorised market makers with be exempt from the covered short ban
cutz
A little confusion as to whether MM's have some sort of exemption to the New World Order.
Just heard on TV that an "Unintended Consequence" was the freezing up of options markets.
Unintended? C'mon Ben and Hank, I thought you read my site? We've gone over the topic a bit lately. Gives you real confidence how well they thought out this plan.
Well, a couple martini's later and the Options Market Makers Are Exempt! They can carry on their anti-American stock shorting with impunity again!
This from my fried Greg.
The Securities and Exchange Commission’s Division of Trading and Markets today issued the following statement:
“The Commission staff is recommending to the Commission a modification to its order prohibiting short selling in securities of specified financial firms. This modification would extend, for the life of the order, the exemption for hedging activities by exchange and over-the-counter market makers in derivatives on the securities covered by the order.”
So we have that going for us.
Which is nice.
Seriously, it's good from the standpoint that at least they'll be able to sell puts now. But what if I want to sell them? I'm going to still need a better price if I can't short stock. So it's a bit of an untenable situation if the floor can sell them way better than anyone else.
What about firms that are both options market makers and a million other different things. I'm looking at you Susquehanna. Are they going to wall off short sales in only stocks in which they make options markets? Which is probably everything.
Now that Pandora's Box is open, how about market makers in ETF's who need to sell baskets of stocks to hedge? Or anyone that buys a Convertible Preferred? Or......whatever, it's just too ridiculous on so many levels that they took this step. I mean the step of banning shorts altogether, not relaxing it a bit.
Bottom line is it's all untenable. What's going to happen when they walk us back out and allow shorting again? Would it have been so tough to actually enforce the rules to begin with?
Credit where due to some Bubblevision pundits. Liesman, Santelli, Haines, Faber, Rhatigan, come to mind All deviated from the usual party Cheerleading Line and called out the powers that be on this.
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