BigGuy

S&P 500 Stocks with the Highest Short Interest

Stocks shorted below $5 are not marginable. Also, most full service and many discounters require at least $2 per share on penny stocks and $5 a share on stocks between $1 and $5.

In other words, to short 10000 shares at 50 cents -- $5,000 proceeds -- most firms will require you to put up $20,000. To short 10,000 shares at $1 -- $10,000 -- most firms will require you to deposit $50,000 in cash or T bills, not stock, to secure the transaction.

Shorting MRK and PFE here is really unwise. What bad news there could be is already out. Big pharm has much better chances of having a positive surprise or no surprise at this point than a negative surprise. What could push the stock down has already happened.