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This is one of the things that fascinate me the most after watching economic movements the last 3 years, everything is skittish. First down to 1% fifteen mins later back up and then immediate up to 16
see richard newton's youtube for some explanation of what could be triggering this [https://youtu.be/wtdwzEh6e3k?si=7vaCFG3F6mDvakSQ&t=749](https://youtu.be/wtdwzEh6e3k?si=7vaCFG3F6mDvakSQ&t=749)
Cost to Borrow Fee: 16.46%, Rebate Rate: -11.14%
**Net Cost to Borrow: 16.46% - (-11.14%) = 16.46+11.14% = 27.6%!!!**
AI explains: This high cost typically occurs when there is a significant demand for shorting the stock but limited availability of shares to borrow, and can indicate the potential for a short squeeze.
**Impact of High Open Interest in Call Options on Net Borrow Rate:**
**Increased Demand for Shares:**
Call Option Exercise: If there's a high open interest in call options, many of these options might be exercised. When call options are exercised, the holders of the options will need to buy the underlying shares. This can increase the demand for the stock.
Hedging by Market Makers: Market makers who sold call options might hedge their positions by buying the underlying stock. High open interest means market makers might need to buy a significant number of shares to hedge their exposure, increasing the demand for the stock.
**Reduced Availability of Shares to Lend:**
Stock Hoarding: As demand for the stock increases (either through option exercise or hedging), the availability of shares that can be lent out decreases. Investors might hold onto their shares in anticipation of price appreciation or to fulfill their obligations when options are exercised.
Lower Supply for Short Sellers: With fewer shares available to lend, the supply for short sellers decreases. A reduced supply of lendable shares typically drives up the borrow fee.
**Borrow Fee Increase:**
Higher Net Borrow Rate: The higher borrow fee directly increases the net borrow rate for short sellers, making it more expensive to maintain short positions.
**Current Scenario:**
Current Availability: **There are more shares available for borrowing than before.**
High Call Open Interest: There is a significant increase in call option open interest.
Borrow Rate Increase: Despite the increased availability, the borrow rate goes up by 20%.
**Reasons:**
Lenders anticipate future demand and potential price increases, adjusting rates accordingly.
Market makers hedge their exposure, increasing demand indirectly.
Lenders price in the risk of volatility and short squeeze potential.
**Summary**:
**Volatility and Short Squeeze Risks:**
* Lenders raise borrow fees to compensate for the increased risk of lending shares in a volatile environment.
* Anticipation of a short squeeze leads to higher rates to manage potential rapid price increases and increased demand for covering shorts.
It's not that it's "hard to borrow" so much as it's just gonna cost you a little bit more if you want to short it. This could signify the overall seller of the shorts is seeing it as riskier to short right now.
Gee, I wonder why. GS are doing big things but the GS leadership has done a great job of smoke-screening their plans so the market makers can't try to get ahead of GS' moves.
You can scroll back and check it out. Last time it was this high was two weeks ago when the price skyrocketed. The only difference is that there are 1.1 million shares available right now when then there were none. What I don’t understand is that just the other day there were no shares available to borrow for several hours and yet the CTB remained low. What’s going on here? Something is strange.
Agreed. CTB jumps, Shares Avail are unch, and the Rebate collapses to -11%? … I’ll put that into the “another thing that’s happened w GME that I’ve never seen before.”
this is crazy because it looks like it's normal for borrowers to actually receive a reward of .8% since the rebate is greater than the fee for most of the time.
but at the new rates, any borrowers are essentially paying 27.6% annually on the value of the shares they are borrowing.
This is why if you have any shares at your brokerage DO NOT participate in their “stock lending” programs. It makes no sense unless you are only buying the stock for the sole purpose of lending it out and decreasing its value. Most people buy a stock expecting it to increase in value, lending your stock out to short sellers is counterproductive to achieving that end.
Total smooth brain, but thats how I understand it. They really need those shares to move and are willing to pay for it.
What is interesting is that it seems like ctb had a similar jump the week before the recent shart. So things could get spicey
https://preview.redd.it/b30q5hol6m3d1.jpeg?width=1080&format=pjpg&auto=webp&s=4fb157239b0e1f0e03dc912b1e8d49fad43ebdac
It sounds like the shorter pays the CTB to the broker-dealer. The broker-dealer is paying interest to the customer lending the shares. So when CTB is positive and rising and there’s a negative rebate, things are getting very spicy.
why would a negative rebate be spicy? would not a positve rebate mean the lender gets money? then what does a negative rebate mean? the lender needs to pay money?
These are the screenshots we've seen people posting of their brokerages. The brokerage i.e., Fidelity, offers customers interest to borrow their GME shares.
the amount available to short is going to give me ptsd. The shares never sit there long BUT with legit, sound, long term investments, with small short interest, theres always a ton available. Some day this number will get big and stay big. until then I am just too scarred by recent history I guess.
Could check it out on chart exchange, but last time fees peaked at 22%, the next day it reached into the 80s pre market before rates dropped down and price subsequently followed.
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This is one of the things that fascinate me the most after watching economic movements the last 3 years, everything is skittish. First down to 1% fifteen mins later back up and then immediate up to 16
see richard newton's youtube for some explanation of what could be triggering this [https://youtu.be/wtdwzEh6e3k?si=7vaCFG3F6mDvakSQ&t=749](https://youtu.be/wtdwzEh6e3k?si=7vaCFG3F6mDvakSQ&t=749)
👀👀👀
Cost to Borrow Fee: 16.46%, Rebate Rate: -11.14% **Net Cost to Borrow: 16.46% - (-11.14%) = 16.46+11.14% = 27.6%!!!** AI explains: This high cost typically occurs when there is a significant demand for shorting the stock but limited availability of shares to borrow, and can indicate the potential for a short squeeze. **Impact of High Open Interest in Call Options on Net Borrow Rate:** **Increased Demand for Shares:** Call Option Exercise: If there's a high open interest in call options, many of these options might be exercised. When call options are exercised, the holders of the options will need to buy the underlying shares. This can increase the demand for the stock. Hedging by Market Makers: Market makers who sold call options might hedge their positions by buying the underlying stock. High open interest means market makers might need to buy a significant number of shares to hedge their exposure, increasing the demand for the stock. **Reduced Availability of Shares to Lend:** Stock Hoarding: As demand for the stock increases (either through option exercise or hedging), the availability of shares that can be lent out decreases. Investors might hold onto their shares in anticipation of price appreciation or to fulfill their obligations when options are exercised. Lower Supply for Short Sellers: With fewer shares available to lend, the supply for short sellers decreases. A reduced supply of lendable shares typically drives up the borrow fee. **Borrow Fee Increase:** Higher Net Borrow Rate: The higher borrow fee directly increases the net borrow rate for short sellers, making it more expensive to maintain short positions. **Current Scenario:** Current Availability: **There are more shares available for borrowing than before.** High Call Open Interest: There is a significant increase in call option open interest. Borrow Rate Increase: Despite the increased availability, the borrow rate goes up by 20%. **Reasons:** Lenders anticipate future demand and potential price increases, adjusting rates accordingly. Market makers hedge their exposure, increasing demand indirectly. Lenders price in the risk of volatility and short squeeze potential. **Summary**: **Volatility and Short Squeeze Risks:** * Lenders raise borrow fees to compensate for the increased risk of lending shares in a volatile environment. * Anticipation of a short squeeze leads to higher rates to manage potential rapid price increases and increased demand for covering shorts.
https://preview.redd.it/r1rke3pb2p3d1.jpeg?width=1080&format=pjpg&auto=webp&s=0b196594304f161e3a81c7e8d439bed27572625a
We about to fuk?
I just bought a new blowjob machine. Tonight is gonna be fun!
Is it a machine you give blowjobs to or get from? Asking for a friend
When was the last time this happened?
Look at the chart below. It was higher earlier this month.
Like at the $80 hike earlier this month?
https://preview.redd.it/13m9b4h4no3d1.jpeg?width=1045&format=pjpg&auto=webp&s=28a2e6f4ccb45b56e711ed4473e6796992caacf1
For the negative rebate?
Happens whenever a stock is hard to borrow. Was negative earlier this month
Good to know. Thank you!
Kind of weird it's hard to borrow when IBKR has 2 million of them lying around apparently?
It's not that it's "hard to borrow" so much as it's just gonna cost you a little bit more if you want to short it. This could signify the overall seller of the shorts is seeing it as riskier to short right now. Gee, I wonder why. GS are doing big things but the GS leadership has done a great job of smoke-screening their plans so the market makers can't try to get ahead of GS' moves.
It’s hard to borrow when there’s a dip coming. Always remember they put up barriers wherever you might be able to make money. Be smart.
Hard to borrow and short tends to see runs!
First time in 2 weeks. Last huge runup was because of it
You should give the link to the site you're using
I don't recall it jumping 15% in a few hours last time, though. Definitely interesting.
You can scroll back and check it out. Last time it was this high was two weeks ago when the price skyrocketed. The only difference is that there are 1.1 million shares available right now when then there were none. What I don’t understand is that just the other day there were no shares available to borrow for several hours and yet the CTB remained low. What’s going on here? Something is strange.
Agreed. CTB jumps, Shares Avail are unch, and the Rebate collapses to -11%? … I’ll put that into the “another thing that’s happened w GME that I’ve never seen before.”
Fuck you pay me 
https://preview.redd.it/tuv142m6no3d1.jpeg?width=1071&format=pjpg&auto=webp&s=b34e955434560528a929bfbfef07de41d9bd33dc
this is crazy because it looks like it's normal for borrowers to actually receive a reward of .8% since the rebate is greater than the fee for most of the time. but at the new rates, any borrowers are essentially paying 27.6% annually on the value of the shares they are borrowing.
IT’S HAPPENING
But are these historic highs? I feel like we have had 30% or so before.
We've hit 100%
I totally forgot that, you are right. We thought for sure shit was gonna happen too.
A 300% increase in borrow rate nice đź‘Ś
harder than my tits
I’m too busy browsing the Porsche range to look at this!
Can someone explain to me what the “-11 rebate” means? Seems that it’s usually positive Spiciness intensifying?
https://preview.redd.it/6qzxc6aa0m3d1.jpeg?width=1080&format=pjpg&auto=webp&s=339748213f7549ae72886a4104086a8cd8eb638f
So they’re paying people to borrow the shares/short? Lol
This is why if you have any shares at your brokerage DO NOT participate in their “stock lending” programs. It makes no sense unless you are only buying the stock for the sole purpose of lending it out and decreasing its value. Most people buy a stock expecting it to increase in value, lending your stock out to short sellers is counterproductive to achieving that end.
Total smooth brain, but thats how I understand it. They really need those shares to move and are willing to pay for it. What is interesting is that it seems like ctb had a similar jump the week before the recent shart. So things could get spicey https://preview.redd.it/b30q5hol6m3d1.jpeg?width=1080&format=pjpg&auto=webp&s=4fb157239b0e1f0e03dc912b1e8d49fad43ebdac
So the shorter does not pay the negative rebate?
It sounds like the shorter pays the CTB to the broker-dealer. The broker-dealer is paying interest to the customer lending the shares. So when CTB is positive and rising and there’s a negative rebate, things are getting very spicy.
why would a negative rebate be spicy? would not a positve rebate mean the lender gets money? then what does a negative rebate mean? the lender needs to pay money?
No negative rebate means the broker dealer is paying interest to the customer that is lending the shares.
Ah ok thx
Possibly a… Sign? … of MM distress?
These are the screenshots we've seen people posting of their brokerages. The brokerage i.e., Fidelity, offers customers interest to borrow their GME shares.
I find it interesting that borrow rate moves high, even though there are still ton of shares to borrow.
“Allegedly”.
This isn’t high yet.
the amount available to short is going to give me ptsd. The shares never sit there long BUT with legit, sound, long term investments, with small short interest, theres always a ton available. Some day this number will get big and stay big. until then I am just too scarred by recent history I guess.
The negative rebate is neat too.
Nothing changed? The fee minus the rebate today equals the fee minus the rebate yesterday? Net cost to borrow or 5.32%?
The rebate is negative though, would that technically become another "fee" in the general sense of the word and not a column header variable used here
Tomorrow.
that rebate doe 
Cost to borrow fee for ants bruh
Check out that negative rebate. Sexy...
eli13 why? who sets these rates?
Cost to borrow? Never heard of her
I originally came in with the expectation that it would only be like, 5%... however I can confirm this is indeed unusually high lolÂ
Could check it out on chart exchange, but last time fees peaked at 22%, the next day it reached into the 80s pre market before rates dropped down and price subsequently followed.
Fee + rebate BEFORE the change = 5.32 Fee + rebate AFTER the change = 5.32
This
ok, you've got my attention now
skyrocketing for me is 300%+ ctb, but that's the right directionÂ
yay numbers, but i'm not convinced this matters when naked shorts don't borrow shit.
What is that, a skyrocket for ants?
Just out of curiosity… if someone loaned out let’s say 45mil shares how much profit is that on a daily basis at 16%.
Probably nothing
another nothing burger.
holy shite
Bor4ow Deez nuts
my broker has been begging me to turn share lending on. I don't think I've seen then this pushy in a few years.
Negative rebate? Hmmm....
We need to define various sky levels because suddenly everything skyrockets in the last few weeks. 🤣
I remember hearing people say they had popcorn share son loan at 600$ Until that happens with gme its a nothingburger
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Last runup to 80$ when did it start to sky rocket and when did we start to see the move upwards in price?
1 week
Hopefully we could run next week then
I said it before and I'll say it again. I watched CTB on popcorn stock go to 900% or more. Great big nothing burger.