are you guys able to short MS?
etrade is giving be some BS why i can't....
this is what they wrote:
Thank you for your message and your feedback regarding our margin requirements. Morgan Stanley has a 100% equity requirement.Unfortunately, the account requirements are non-negotiable. It is at the discretion of our Margin Department to set the requirement for each account. We are obligated to ensure that we abide by highly regulated standards of the security industry. This decision depends on many factors, some of which are the stocks you hold and their individual requirements, the type of account, and the type of trading you do in the account.
they saying that MS makes their own rules when it comes to shorting their stock?
i know the ban was lifted....
We will get our opportunities when the time comes. ITM by the way means in the money like if an option, say November 2008 has a strike price of $50 and the stock is at $54----the option is said to be in the money as it has $4 of intrinsic value. If the stock was at $49, it would be ATM or at the money and at $45, the option would be OTM or out of the money. The farther out of the money an option is----the more likely it will expire worthless.
I use ThinkorSwim but, don't short in the usual way as in shorting the stock but, buy put options instead. Cost is reasonable plus you get leverage. Out of MS although, I traded it down the other day but, bailed out when MS did not drop as expected. Still made a litte profit so, it is good.
Don't see stocks to buy from other industries too so, it may take a while for this recovery if it happens.
well i am cashed out now....i dont see anything to go into at the moment. could have made a couple bucks on MS if i could have shorted at 22....anyway....too late now.
where can i get some good info (link) on where i should be putting calls and puts? i haven't tried it yet...understant the concept a bit (taking an educated guess at where the stock price will be in the near future)....but would like to see where the heard numbers are on particular stocks.
so this is the latest BS (Rule 431?) that etrade is giving me (after making 20% profit last month):
You have a day-trading minimum equity call for the account shown below.
Account ending in: XXXX-1644
Due: Close of market on 10/23/2008
Because you currently meet the definition of a pattern day trader, NYSE Rule 431 requires that you maintain a balance of at least $25,000 in your account. You can satisfy this call:
By depositing additional funds into your account, and/or
By depositing additional securities into your account, and/or
When your account equity rises above $25,000 due to market appreciation
If the call is not met by the date shown above (or if you execute a day trade before the call is met), NYSE regulations require that your account be restricted to trading on a cash-only basis for 90 days or until the call is satisfied.
to answer your question. you can short ms but you need to have the equity to do it you can't do margin.
if you have 100k in cash you can short up to 100k. if the stock moves up you will have to cover the mark to mark on the margin. So if your going to short at these levels which personally i think is crazy you've missed the move give yourself some room. short 80k instead. You're selling into consolidation at these levels that is rarely profitable other than a simple day trade. Your better off building a core long position. I have my reasons I won't go in to them unless provoked.
Most of us are in a finacial prison.Have you ever heard of big brother?Well,he is watching our every move.
I just love Morgan's fearless leader telling us how he loves shorts and supports their actions(except if it effects him).
One question I ask all,long or short.IF THIS MARKET WAS NOT GOING TO 1993-94 LEVELS,would they be doing what they have been doing?GET OUT!!!!!
the guy is BS'ing you. look at what he said: "It is at the discretion of our Margin Department to set the requirement for each account. We are obligated to ensure that we abide by highly regulated standards of the security industry."
their Margin Dept makes the requirement. not the "security industry".
what's more, the security industry is arguably the least regulated and least supervised industry of all. Wall St is a place where the most obscene and shameless larceny in the world is carried out.
most of the rules are made to give the big fat cats an edge over the small retail investors.
the sad things, they've got politicians in their pockets and there's not much the small retail investors can do.