Tomorrow is the day when I think we likely see forced margin buy to covers in the afternoon for the run up on 4-4.
Could be significant.
I picked up some shares yesterday because it was clear there was strength at 21.80 area despite the market weakness. I too am looking for some aggressive short covering that could send the shares back to new highs or close to it.
Well, let's see if lighting can strike 3 times in a row!
Just a theoretical trade. I would buy calls 10 min after the market opens and then put a protective sell stop behind them after VHC appreciates at least 3% from that point.
I currently am cash, so this is a theoretical trade.
Happy trading all!
I suggest you take a closer look at day trading requirements regarding margin positions before you post.
Remember this: It is better to have people think you are a fool then it is to open your mouth and confirm it.
I was actually a broker there and series 7 licensed and a margin sales broker about 11 years ago before the dot com boom-bust and they layed off about 900 of us...even though I got my bonus the month before...I digress..hehehe...seemed bad at the time, but ended up a blessing. I have not been in the industry since, but learned some great trading mechanics, so a great experience. I wish them the best and feel they have one of the best platforms in the industry for the money and a great management team. I used to live in Omaha and that is their HQ.
Anyway, I do not know exactly all their current requirements, you should check with them. Call the Apex team to get the best service.
There are fed requirements across all houses, exchange requirements that usually mirror fed. And then there are house requirements.
Ameritrade, as well as many brokerage houses can set whatever they want based on their rules. Normally, these requirements are in place to protect the broker and do not favor longs or shorts so requirements are usually by security, not a particular side.
When volume and price and market cap begins to stabilize a security over the long term, their management may decide to change this. Some times it is objective, sometimes subjective.
Some times when large numbers of long shareholders move their positions to a cash account or request shares be mailed to their house, this can make fewer shares available to short. A brokerage firm can run out of shares to short, but that does not mean all firms are out. Also, if you hold a put position overnight, it can be "put to you" or exercised. This can happen at any time, but is more frequest the 10 days leading to option expiration, which we are.
Long options are a good alternative to a long margin position for those that understand the risks and have the funds. Not suitable for all investors, but may provide an above average return and risk.
Anyway...I think a short squeeze is due tomorrow or friday.
Best wishes to both sides and trade well.