Tracking short interest

[jvonbokel]

First attempt:
Click for interactive graph of interest rates.
You can bookmark that if you want and I'll keep it as current as I can.

Can't figure out how to make the graph show up in a TMC post. If I could embed HTML in a post, this would do it:

<iframe width="800" height="600" seamless frameborder="0" scrolling="no" src="https://docs.google.com/spreadsheet...pubchart?oid=853615618&amp;format=interactive"></iframe>

...but (as you can see above) you just see the source, not what it's pointing to. If anyone knows how to embed html into a TMC forum post, please let me know.

All these graphs are super awesome! I don't think you can embed HTML here, but if you change the last argument of that URL from "interactive" to "image", you can embed the image. You could still include the link the interactive version as well. I think TMC might even cache the image, so that the post content remains static, but I'm not sure about that. We'll see after the spreadsheet gets updated.

Interactive version of the above chart.

 

[Yonki]

Fidelity's TSLA loan rate down 0.5% to 8%.

Interactive version of the above chart. (Thanks JVB!)

 

[Yonki]

I think TMC might even cache the image, so that the post content remains static, but I'm not sure about that. We'll see after the spreadsheet gets updated.

You're right! TMC remembers the URL (not the image) when you use "format=image", so all you need is a browser refresh to see the latest plot.

Now I'm looking for suggestions for how best to keep communicating this data, since all I need to do now is update my datasheet and the changes are reflected in the image and the interactive. I don't want to keep posting a new graph every time the rates change (because it would really be the same graph). A few ideas:

1) I could start a new thread and make the graph the first entry if TMC mods agree to make it a sticky thread so it doesn't get buried.
2) I could start a new non-sticky thread and make the graph the first entry, but it will rely on people posting to keep it near the top. Should we move the paid lending (or maybe the entire short interest) discussion to a new thread?
3) Interested people could just bookmark the link to the graph and I stop posting. But that wouldn't help people who stumble onto the topic/thread in the future find the data.
4) Any other ideas?

Ideally I'd like to automate this to the point where I just update the spreadsheet and everyone interested will always get the latest data. Which is where we are now if you bookmark the graph. Maybe that's good enough?

 

[Chickenlittle]

Got goodwill trading violation from fidelity, totally bogus watch out. For those not aware of issue, you cannot sell shares you buy before those shares settle. That seems fair but what I did was to exercise calls (considered the purchase) and sell some tesla stock to buy 2018 calls. That raised the violation. However I have owned tens of thousands of tesla shares for years. They assumed I sold the 1600 shares I had just bought rather than my older shares. Foul, not fair. You cannot specify which shares to sell but why they assume the worst is not clear to me. I disputed this but no response yet. They even gave me another violation yesterday....but I pointed out that I didn't trade that day. Pretty sure I will win on that one.

 

[Incredulocious]

Got goodwill trading violation from fidelity, totally bogus watch out. For those not aware of issue, you cannot sell shares you buy before those shares settle. That seems fair but what I did was to exercise calls (considered the purchase) and sell some tesla stock to buy 2018 calls. That raised the violation. However I have owned tens of thousands of tesla shares for years. They assumed I sold the 1600 shares I had just bought rather than my older shares. Foul, not fair. You cannot specify which shares to sell but why they assume the worst is not clear to me. I disputed this but no response yet. They even gave me another violation yesterday....but I pointed out that I didn't trade that day. Pretty sure I will win on that one.

That's an issue with cash accounts and the best reason for switching to a margin account. On a margin account you can always sell before it settles and you can buy another stock with the funds from a sale before it settles. A lot can happen in three days! (Borrowing on margin to hold more shares indefinitely is not such a great reason to have a margin account, given the risk and the urge to overextend yourself.) All my accounts are margin just to avoid having to wait for settlement if the need arises.

As for which shares get sold (old or new), you can specify which lot to sell on Fidelity if you open the "expanded trade ticket" and click the "choose specific shares" checkbox. As to which shares get sold first if you don't specify, I would expect that is determined by the preference you've specified in your profile, under "Cost Basis Information Tracking": first in first out, or last in first out.

 

[geneclean55]

Got goodwill trading violation from fidelity, totally bogus watch out. For those not aware of issue, you cannot sell shares you buy before those shares settle. That seems fair but what I did was to exercise calls (considered the purchase) and sell some tesla stock to buy 2018 calls. That raised the violation. However I have owned tens of thousands of tesla shares for years. They assumed I sold the 1600 shares I had just bought rather than my older shares. Foul, not fair. You cannot specify which shares to sell but why they assume the worst is not clear to me. I disputed this but no response yet. They even gave me another violation yesterday....but I pointed out that I didn't trade that day. Pretty sure I will win on that one.

That's an issue with cash accounts and the best reason for switching to a margin account. On a margin account you can always sell before it settles and you can buy another stock with the funds from a sale before it settles. A lot can happen in three days! (Borrowing on margin to hold more shares indefinitely is not such a great reason to have a margin account, given the risk and the urge to overextend yourself.) All my accounts are margin just to avoid having to wait for settlement if the need arises.

As for which shares get sold (old or new), you can specify which lot to sell on Fidelity if you open the "expanded trade ticket" and click the "choose specific shares" checkbox. As to which shares get sold first if you don't specify, I would expect that is determined by the preference you've specified in your profile, under "Cost Basis Information Tracking": first in first out, or last in first out.

I have a cash account, and have bought and sold same stock on the same day. Its what you then do with the unsettled funds that can cause problems.

 

[Chickenlittle]

That's an issue with cash accounts and the best reason for switching to a margin account. On a margin account you can always sell before it settles and you can buy another stock with the funds from a sale before it settles. A lot can happen in three days! (Borrowing on margin to hold more shares indefinitely is not such a great reason to have a margin account, given the risk and the urge to overextend yourself.) All my accounts are margin just to avoid having to wait for settlement if the need arises.

As for which shares get sold (old or new), you can specify which lot to sell on Fidelity if you open the "expanded trade ticket" and click the "choose specific shares" checkbox. As to which shares get sold first if you don't specify, I would expect that is determined by the preference you've specified in your profile, under "Cost Basis Information Tracking": first in first out, or last in first out.

cant use margin in IRA

 

[Yonki]

That's BS. What are the consequences of a goodwill trading violation? I'm sure you know this but you can specify what shares to sell even in an IRA account (if you know in advance that Fidelity is itching to nail you for a goodwill trading violation :-/ ).

 

[Chickenlittle]

That's BS. What are the consequences of a goodwill trading violation? I'm sure you know this but you can specify what shares to sell even in an IRA account (if you know in advance that Fidelity is itching to nail you for a goodwill trading violation :-/ ).

No they are not itching to nail me but my shares are loaned out so they prefer not to call those back so they said screw him we will sell the ones he just bought. To clarify this before selling the shares I called and asked the protocol on selling loaned shares. Told "no problem just put the sale in and we will recall the shares prior to settlement". It is in their self interest not to recall the shares. They will place limits on trading with three violations.

 

[Incredulocious]

Speaking of loaning shares, I just had a portion of my loaned SCTY shares returned to me yesterday at Fidelity.... hello out there, any new takers?? Come and get 'em!

 

[Incredulocious]

Speaking of loaning shares, I just had a portion of my loaned SCTY shares returned to me yesterday at Fidelity.... hello out there, any new takers?? Come and get 'em!

Awww, shucks. Now I see that even more of them were returned today. Just a third left out on loan. Where are all my high interest-paying shorts??

 

[tander]

Thought this might be of interest to people.

 

[Yonki]

Borrowing rates continue to drop:

Interactive chart

 

[Yonki]

Now this is just crazy. I'm speculating a little with DRIP, an ETF that's the 3X the inverse of the S&P Oil & Gas Exploration & Production Select Industry Index. I'm betting that oil prices crash again. I just logged into Fidelity and saw that they have loaned out 250 shares of my DRIP at 3%! So people are shorting an index fun that's shorting an index!

This is getting way too meta for me...

 

[esk8mw]

Now this is just crazy. I'm speculating a little with DRIP, an ETF that's the 3X the inverse of the S&P Oil & Gas Exploration & Production Select Industry Index. I'm betting that oil prices crash again. I just logged into Fidelity and saw that they have loaned out 250 shares of my DRIP at 3%! So people are shorting an index fun that's shorting an index!

This is getting way too meta for me...

So, people are choosing to pay borrowing costs to short an inverse index fund? Instead of going long the regular index fund and not paying borrowing costs? When I see stuff like this I get frustrated that I can't beat the market more often.

 

[TMSE]

Now this is just crazy. I'm speculating a little with DRIP, an ETF that's the 3X the inverse of the S&P Oil & Gas Exploration & Production Select Industry Index. I'm betting that oil prices crash again. I just logged into Fidelity and saw that they have loaned out 250 shares of my DRIP at 3%! So people are shorting an index fun that's shorting an index!

This is getting way too meta for me...

Meta of meta?

 

[adiggs]

Now this is just crazy. I'm speculating a little with DRIP, an ETF that's the 3X the inverse of the S&P Oil & Gas Exploration & Production Select Industry Index. I'm betting that oil prices crash again. I just logged into Fidelity and saw that they have loaned out 250 shares of my DRIP at 3%! So people are shorting an index fun that's shorting an index!

This is getting way too meta for me...

Outside of the obvious comedy, and yes - I did snort a bit when I first read this - there must be a hedging angle here, where it's better to be shorting this index, than being long the other index. Maybe they get a little unhooked over time? I guess an obvious interpretation, is that the underlying index uses 1x leverage, where the fund you're in is at 3x leverage. So shorting that, sounds kind of like 3x leverage long.

Maybe not marginable, or at least not marginable at the 3x level like that, so pay 6% for 3x leverage, as a way to get more exposure while ponying up less cash. Yes - I'm totally brainstorming ideas for why to do that

And heck - if you're receiving 3%, then they're paying more like 5-7% for the privilege.

 

[Yonki]

Fidelity:
Lend TSLA: 8.5%
Short TSLA: 15.25%, 0 shares available to short

Lend SCTY: 22.0%
Short SCTY: 43.0%, 0 shares available to short

Old-School Fidelity rate update:
Lend TSLA: 8.0%
Short TSLA: 14.0%, 77,709 shares available to short

Lend SCTY: 13.0%
Short SCTY: 27.0%, 0 shares available to short

Click here for Interactive Version

TSLA's and SCTY's interest rates are definitely starting to converge:

Click here for Interactive Version

 

[Chickenlittle]

7% on fidelity today. I am changing to IB. Found fidelity not particularly useful. Advise given to me by agent on recorded line resulted in goodwill trading violation. When I complained about this they gave me a second violation on a day that I did not trade. Guess I didn't get the message and complained 8 days later about that one and they gave me another trading violation for the trade previously labeled a violation. It's not worth complaining, especially with retribution. Nothing special about one brokerage versus another

 

[Rarity]

What is the punishment for a goodwill trading violation?