lobsterboy

On Short-Sellers and Dishonest Executives

Markham enjoyed the post and I understand your attempt at short selling vs. dishonest management.

I too think naked short selling is terrible and I worked a market where actually added to liquidity, however, I also seen naked shorting destroy companies. You have proven short sellers like Rocker funds who's research and clout with other shorts-hedge funds in the market team up on those stocks putting pressure that normally wouldn't exist because most people could get a locate to short a extremely "tight" stock.
I agree with glassbox the average investor doesn't know that their shares are being used in some cases against that. Of course you can always move those to cash and the brokerage cannot borrow them but in most cases those brokerages make a lot of money borrowing shares of those clients so it doesn't matter anyways.

Typically Prime brokers make large amounts on those "tight stocks" it is a daily rate that's computed internally on how hard they are to locate. I can tell you this, that revenue in this current environment is sorely needed.

lobster

Options Trader: Tuesday Outlook

I am also interested in the NYMEX contracts, how can they not decide to take delivery? Could you explain further? thx