Sears-38% to Short

[Matson125]

 

If anyone wants to short any shares of Sears it costs you 38% per year to short their shares.  Take a look at the video

 

 

http://online.wsj.com/video/heard-on-the-street-no-shorting-sears-stock/E27FE361-0439-4FA4-BC7C-96B199259521.html

 

I am a Canadian and own shares in a margin account with Etrade, is there anyway for me to take advantage of this?  Have my holdings converted out of street name?

 

Thanks

 

[decipher]

options do not have that high a premium. Why the discrepancy between shorting and options?

[Uccmal]

Someone please correct me if I am wrong here.  I believe you need to move your shares into an all cash account i.e. not a margin account.  Then your broker is required to pay you the money for the borrow. 

 

38% seems really high.  I guess people are sure it is going to go bust and fast.  That 38% will disappear your short profits if they stay solvent for 24 months and then go bust. 

 

Sears going bust wouldn't surprise me at this point.  There is only so much ESL can do in this environment.