Tracking short interest

[TSLAopt]

The ACATS procedure, I assume?

Yes, to open the IB account and initiate the ACAT you can do so all online in the account opening process from the below link.
In the below link you can pick IB to open an account and see that IB's special offer is 'no ticket charges' and compare it to other brokers and their special offers:

Online Brokers – The Motley Fool


Interesting side note: At IB, if you have a margin account you can also have your shares lent out as long as you are not borrowing cash on margin. When you do start borrowing cash on margin then IB is allowed to lend out up to 140% of your portfolio on their own behalf (without sharing the lending revenue with you) per SEA Rule 15c3-3 (http://www.investopedia.com/terms/r/rehypothecation.asp)

 

[jvonbokel]

The only brokerages I have heard of that pay interest are Interactive Brokers and Fidelity, with IB offering higher rates.

Thanks for sharing this info. I had seen various posts about the rates before, but somehow it never clicked that I could be loaning out my shares. I currently have accounts with Fidelity and Schwab. Some googling leads me to believe Schwab may also have a lending program, called Schwab Securities Lending Fully-Paid (“SLFP”) Program, but I can't find anything about it on their website, so I'm going to call and see what they tell me.

 

[Gerardf]

Today after market is when the report on the number of shorts on Feb 29th should come out.
That was one day before the Citron tweet.

NASDAQ Short Interest Publication Schedule

 

[Gerardf]

34,052,747. On feb 29th. That is about another 10% up !

http://www.nasdaq.com/symbol/tsla/short-interest

 

[MikeC]

Up 2.5 million, wow!

For reference, the closing price was $179.00 that day.

 

[Yggdrasill]

That is really nice. Makes me glad I'm long when Tesla can climb like that despite 2.5 million "new" shares being dumped into the market. I would have been a bit less enthusiastic if the ~$37 climb from the bottom had come at the cost of millions of shares being removed from the market.

 

[hobbes]

Just read this which is a good summary with plots of what has been discussed around here and the short-term thread lately:

Nope, Tesla Motors, Inc.'s Recovery Rally Was Not a Short Squeeze -- The Motley Fool

From the article:

 

[TheTalkingMule]

Wow, that's pretty insane. Shorts are assuming some sort of issue with the Model 3 rollout or a major snapback in oil? Either is possible I guess, but I'd be much more concerned about the 3 FINALLY coming out causing a massive squeeze.

This is a turning point for the entire Musk world. We all know these first 3's will be $50k+ for a year or so, but the "everyman's electric car" is finally going to be introduced. Next stop solar revolution! Next next stop......Mars!

 

[Yonki]

Reviewing this thread and just noticed this:

It is 12.2% to borrow at Interactive Brokers.

AT IB as of right now you will receive the following rates:

TSLA = 4.8%
SCTY = 32.1%

It looks like uselesslogin and TSLAopt are not getting the same rates. Reading IB's Fully Paid Lending disclosure, it looks like investors might be able to negotiate their rates. Maybe you guys can get your rates up.

Also there appear to be two options for Fully Paid Lending: their Stock Yield Enhancement Program and some sort of self-directed FPL. Does anyone understand the difference?

I'm thinking of transferring my TSLA and SCTY to IB to take advantage of these rates. Before I do, do either of you (or anyone else) have anything to say about trading with IB? Are there any drawbacks I should know about? Some of the negatives mentioned here (like "Merciless margin tightening and fast margin calls") are making me reconsider calm, slow-moving Fidelity....

 

[TheTalkingMule]

It looks like uselesslogin and TSLAopt are not getting the same rates. Reading IB's Fully Paid Lending disclosure, it looks like investors might be able to negotiate their rates. Maybe you guys can get your rates up.

I think they're quoting opposite sides of the transaction. 4.8% to lend out your shares, 12.2% to borrow shares.

 

[Yonki]

I think they're quoting opposite sides of the transaction. 4.8% to lend out your shares, 12.2% to borrow shares.

Ah... Things make more sense now. Though IB says that the default split for lending shares is 50%/50% between you and IB - so if IB's charging 12.2% to borrow, an IB customer lending shares should get 6.1%.

From http://ibkb.interactivebrokers.com/node/1838

How is the income received by a customer on any given Stock Yield Enhancement Program loan transaction determined?
The income which a customer receives in exchange for shares lent depend upon loan rates established in the over-the-counter securities lending market. These rates can vary significantly not only by the particular security loaned but also by the loan date. In addition, IB assesses a Management Fee equal to 50% of the net loan fees paid in exchange for initiating, terminating and managing transactions. In determining the customer’s portion of these fees, the Market Fee Rate % is applied to the loan collateral and this daily Gross Lending Fee is split equally between IB and the customer. For example, assume loan collateral of $10,000 and an annualized Market Fee Rate of 15%. In this example the daily Gross Lending Fee would be $4.16 (($10,000 *.15)/360), of which $2.08 would accrue to the customer and $2.08 to IB as its Management Fee. Lending fees are calculated and accrued daily similar to interest credits.

I couldn't find the part that said the interest rate split was potentially negotiable - maybe I imagined that...

 

[TSLAopt]

Ah... Things make more sense now. Though IB says that the default split for lending shares is 50%/50% between you and IB - so if IB's charging 12.2% to borrow, an IB customer lending shares should get 6.1%.

From http://ibkb.interactivebrokers.com/node/1838


I couldn't find the part that said the interest rate split was potentially negotiable - maybe I imagined that...

IB does not negotiate fees/rates because it is by far already the most cost effective broker out there

stock lending is a very different world and not as simple to understand as you are assuming

 

[Yonki]

IB does not negotiate fees/rates because it is by far already the most cost effective broker out there

stock lending is a very different world and not as simple to understand as you are assuming

Well I'd certainly like to learn more - feel free to share anything you know.

 

[uselesslogin]

Ah... Things make more sense now. Though IB says that the default split for lending shares is 50%/50% between you and IB - so if IB's charging 12.2% to borrow, an IB customer lending shares should get 6.1%.

From http://ibkb.interactivebrokers.com/node/1838


I couldn't find the part that said the interest rate split was potentially negotiable - maybe I imagined that...

The cost to borrow today is 7.3%. It has been quite volatile lately. My position is honestly built entirely of options right now so I have no shares to lend and the cost to borrow is the one I am used to looking up.

 

[doctoxics]

Can you believe that TSLA shares shorted continues to go up as we approach the Model 3 reveal? Do these shorts have no fear of the impact of the Model 3 reveal? Apparently not. Maybe they know something, although I doubt that. Perhaps, as some here have suggested, they have been blinded by greed following their gains from Tesla's struggles with Model X. April should be a wild ride. Long Tesla - strapped in - waiting for the fireworks.

 

[Gerardf]

Borrowing at 12,2 % !!! Wow.


I was wondering about one thing. How does this exactly work ?

Can someone who is lending out a share for shorting, demand that share back at any time ?
..... Or does the borrower have the right to borrow it until a fixed / agreed time (e.g. expiration).

What happens when a shareholder here decides to withdraws the right to lend out his/her shares ?

I was thinking what could happen if a big institutional shareholder would 'recall' the borrowed shares, in a situation where there are very few shares available to borrow a replacement share.

 

[TheTalkingMule]

I was thinking what could happen if a big institutional shareholder would 'recall' the borrowed shares, in a situation where there are very few shares available to borrow a replacement share.

Tesla stock up 40% this week - May 10, 2013

 

[Yonki]

Can someone who is lending out a share for shorting, demand that share back at any time ?

Yes.

..... Or does the borrower have the right to borrow it until a fixed / agreed time (e.g. expiration).

No.

And I believe Mule answered your other question perfectly.

 

[Gerardf]

Yes.
No.
And I believe Mule answered your other question perfectly.

Thanks.
WOW, really ?

This is even 'more interesting' than I dared to think, and 10x more scary for the shorts than I thought.

The people currently holding a naked short position definitely have more balls than I have
I would not be able to sleep due to fear of a large share holder to request the shares I (and many other at the same time) borrowed back.. first thing tomorrow .. :scared:

Conspiracy mode: maybe even Elon lend them out (he could live a happy rest-of-his-life with just the borrowing interest on the weeks of this year alone :tongue.

 

[blaz]

As of today, Fidelity is paying 3.75% interest to borrow TSLA shares and 41% for SCTY.