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15 votes

Without Bloomberg, how can retail investors know how many shares have been shorted daily?

There are two different data items. "Short volume" (generally available daily) measures the number of shares that have been shorted in the given period of time, while "short interest&...
Dimitri Vulis's user avatar
12 votes
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Why do institutional Traders prefer Short Selling instead of Buying Puts?

In my opinion, professionals mainly trade options if they want to trade the volatility. I believe there is a mathematical proof that shows that if the realized underlying volatility between the option ...
Jan Stuller's user avatar
  • 6,178
9 votes

Why do institutional Traders prefer Short Selling instead of Buying Puts?

In addition to other reasons mentioned here, options tend to be expensive to trade (they have high bid-ask spreads). These do add up in institutional asset management, so best avoided. Further, if ...
Bennet's user avatar
  • 191
6 votes
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Portfolio Optimization sum of weights constraint with short selling

In the early days of Portfolio Theory there were different views about short positions. Some authors modeled short positions as negative and required all weights to add up to 1 (first equation), ...
nbbo2's user avatar
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6 votes

Stock borrow cost timeseries

Unfortunately this data is usually very broker specific -- not least because a firm's borrow rates will be tied to its balance sheet, flows, repos, where it's able to currently finance its book (ie, ...
R110's user avatar
  • 159
6 votes
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Are risk-free-rate bonds and cash fungible?

First of all your statement is not quite correct. If you receive cash as collateral, you have to pay me interest at whatever rate we have agreed to (probably Fed Funds). If you receive bonds as ...
dm63's user avatar
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5 votes

How to solve for the implied stock lending rate given equity options prices?

I realize I'm resurrecting an old thread, but I don't think the answers were clear enough. You can get a really good estimate for borrow rate by doing: Calculate the forward by adding Strike Price + ...
OGC's user avatar
  • 281
5 votes
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How can anyone know how many shares have been shorted?

If you go on Bloomberg, type in the ticker of the company that you are interested in and then type the command "SI" and hit enter (where "SI" stands for "Short Interest"),...
Jan Stuller's user avatar
  • 6,178
5 votes
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Without Bloomberg, how can retail investors know how many shares have been shorted daily?

FINRA reports short volume and total volume on a subset of trades reported to its reporting facilities. Quoting FINRA, the data: ...
Sergei Rodionov's user avatar
5 votes
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How to correctly explain the current price action in a trading chart with the Hurst Exponent found?

Does the above mean that I should consider opening short positions for these trading pairs when I get a Hurst Exponent greater than 0.5 and also its prices come from top to the bottom? No. Hurst ...
amdopt's user avatar
  • 4,348
4 votes

How to hedge a short VIX position with SPY

Calculate the beta of the VIX Dec 18 contract to the SPY. Then apply this equation: $$\ hedge \ ratio = \frac{1000\beta}{SPY_{price} } $$ You then take the hedge ratio round it and that will ...
PlantFox's user avatar
  • 111
4 votes
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How come SNAP does not have option chain?

Options will be listed this Friday, source.
LocalVolatility's user avatar
4 votes
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Futures short interests vs open interests

The Bloomberg ticker "CVXCTNCS Index" is the CFTC commitments of traders report for short positions of non-commercial traders, i.e. traders categorized by the CFTC as not having a commercial interest ...
Chris Taylor's user avatar
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4 votes
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How equity dilution could be profitable for short sellers?

Regarding your first question, here a simplified explanation: Assume a company A, worth 100\$, split into 100 outstanding shares. You own 5% of this company and, therefore, 5 shares or 5\$ of the ...
Fokko's user avatar
  • 176
4 votes
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How quickly can someone pull out of their short?

Let us first set the scene. When a market participant $A$ is shorting a company $X$, he is effectively going to see some other participant $B$ who holds shares of company $X$ and borrows these shares ...
Daneel Olivaw's user avatar
4 votes

Why do institutional Traders prefer Short Selling instead of Buying Puts?

Puts are not available on all names, or might only be available for a limited set of expiries. I'm sure there are other reasons but those are the two most obvious.
user42108's user avatar
  • 2,272
4 votes

Why do institutional Traders prefer Short Selling instead of Buying Puts?

At the risk of making maybe three obvious points: 1- Many funds' investment theses are not predicated on a particular price point on a specific expiry date. They simply believe that X is too high ...
demully's user avatar
  • 5,071
4 votes

Stock borrow cost timeseries

This website has detailed time series data for borrowing cost and shares available, sourced from IB. You can also retrieve the data using the following API endpoint: ...
Helin's user avatar
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3 votes
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short squeeze basic questions

Is there a way to find out what the critical price of the stock approximately is at which point most shares were sold short? Not that I am aware of, however, there is a way to find the Daily Short ...
amdopt's user avatar
  • 4,348
3 votes
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Backtesting short-selling strategy using pandas dataframe

Assuming your dataframe looks something like this and the name of the dataframe is your_dataframe (I left out one of your columns that wasn't needed for this): <...
amdopt's user avatar
  • 4,348
3 votes

Short sale and zero investmest strategy

You pretty much have this correct. You don’t have to have the spread equal to zero to unwind the trade. All you would care is that the stock you bought (stock A) outperform the stock you shorted (...
AlRacoon's user avatar
  • 6,632
3 votes

Why do institutional Traders prefer Short Selling instead of Buying Puts?

Cost. And greed. They want to squeeze every penny that is possible out of their transaction. It costs much less, maybe nothing, to short stocks that do not even exist. However the risk is ...
statman's user avatar
  • 31
3 votes

Why do institutional Traders prefer Short Selling instead of Buying Puts?

Two main reasons: cost/premium: there is upfront premium associated with purchase of any put option. If your option ends up out of money, your premium is lost. for example, if stock price remains ...
toing's user avatar
  • 233
3 votes

Gamma squeeze - mathematical explanation

Your questions on gamma squeeze are nicely answered here and/or here. Pnl of options book We will assume that the risk-free rate $r$ is zero. Assume that you hold a book $V(t,S)$ consisting of options ...
Pontus Hultkrantz's user avatar
2 votes

Under which conditions the minimum variance portfolio involves no short selling?

There are two conditions: $W_1=s_0$ has to be non-negative, which means $\sigma_2^2 - \sigma_1\sigma_2\rho \ge 0$, which simplifies to $\sigma_2 \ge \sigma_1 \rho$. (I assumed $\sigma_2 \ne 0$). The ...
Alex C's user avatar
  • 9,382
2 votes

How are ETF fees deducted? What happens if you short an ETF?

To answer your second question, the expense ratio fees are reflected in the net asset value of the ETF. Shorting also incurs a borrow cost.
pyCthon's user avatar
  • 2,121
2 votes
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Efficient way to short Tesla

As LocalVolatility pointed out, the cost should be priced into the derivatives as well so you cannot do better than that unless you have an execution alpha, provided you want the exposure of a naked ...
elleciel's user avatar
  • 239
2 votes

Equity short Interest data source

FREE Short Sale Data Source SEC Data Reported to a FINRA TRF (NASDAQ TRF and NYX TRF) This is a direct link to all of the short sale data available. Short Sale Volume Data (NASDAQ TRF, NYX TRF, ...
Ted Taylor of Life's user avatar
2 votes

If by selling short assets, you get extra capital for your longs, can you actually be dollar neutral?

You should have bought your (long) stocks with the proceeds of the ETF sell.
FFF's user avatar
  • 176
2 votes

Short selling limits and institutional ownership

Assuming it is true, most likely due to market/institutional constraints. Institutional investors hold their assets at a custodial bank. Those banks operate securities lending programs which lend ...
eSurfsnake's user avatar

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