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ProShares Ultra VIX Short-Term Futures Message Board

  • A Yahoo! User Jan 2, 2013 5:33 PM Flag

    question for longtime shorts

    hi guys, I'm looking for advice please.
    I have a small margin account with TDA. I've been holding 100 shares of UVXY short for a month or so at 31 and then picked up 100 more at 20 before the latest spike up. I was not too concerned during the spike to the upper twenties and was trying to short more however last Friday 12/28 TDA forcibly closed my short position at 26.7 due to "there being no shares available to borrow".
    I'm just a small time investor, struggling to succeed at this game and make ends meet... finally doing something right by shorting UVXY and they still managed to screw me. I'm sure there were many other accounts at TDA that held onto their short positions and it angers me.
    What would you do? Do I have any recoarse? Have you ever experienced this?
    thanks, JP

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    • JP...

      Don't be afraid to take some profits. If your UVXY short is worth some dough...cover. Wait for a spike...sell short...make some money...cover. Rinse and repeat. Don't get greedy...UVXY will rip your face off if you're not careful.

      Sentiment: Strong Sell

    • That is the reason I just buy put options. You don't even need a margin account to do that. I have had Jan 35.00 put options for 2 months now and I can execute them or simply sell the options at any time and I have no margin call worry no matter what happens.

      • 1 Reply to deluxebuttkickin
      • I am also an option player.

        The item you have to be careful of is the premium you are paying for the options and the expiration date.

        Shorts do not have to worry about that, but do have to worry about their shares being called away.

        Thus, best strategy may be to short when you can and if they get called away, then buy the options.

        Good luck.

        Sentiment: Strong Sell

    • You probably got margin call since the shares you shorted at $20 went 50% on Friday but usually they will give you a few days to relocate your money or liquidate position. You should give them a call. If UVXY is all your position, they were probably afraid that your account may go negative if UVXY kept rising.

    • I also had a short position at another broker which was closed (after a warning on the previous day) at 26.69. It wasn't a margin call my excess liquidity was way more the margin requirement. A few times before I had similar warnings but the buy-in was reverse. I did lose some money and balance because of this.

    • 1. You already borrowed the shares. They can't just take it back from you.Unless you got a margin call.
      2. If you didn't get the margin call i would email them with your concerns and follow up with a phone call and then another email to them about the phone conversation. Hopefully they will resolve it.
      3. If the issue is not resolved satisfactorily i would email them again, ask to speak with some one higher up. If they still give you the run around contact FINRA and the SEC.
      4. If you had a margin call, but you believe the margin call was unjustified i would then repeat the same procedure as #2 and # 3 above.
      5. If you received a margin call and you feel it is legitimate then that's how the cookie crumbles, the ball bounces. etc. Move on.
      6. Good Luck!!!

      • 2 Replies to never_sink
      • jondow69 Jan 2, 2013 6:04 PM Flag

        hey never, i had the same problem with scottrade a while back, they called in my shorts,here;s the deal, they can,and will do it, if you read there rules/regs, they specifically say they can call in your shorts, thats why i stopped trying to short these products with scottrade,i don't trust them, and instead of asking us, he should call TDA right now and ask them whats up, and tell us what they said? this is why i don't trust UVXY, all the odds are against you,maybe with a bigger brokerage co, which shorts alot, but a lot of these discount brokers act the same way!
        PS i think tommorow UVXY is UP,jmo!

      • operative word is "borrowed" - owner can take shares back at any time

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