Your Questions About... Short-Selling, RBS
Time to sort through our in-box and answer more of your questions.
Leslie from New Jersey
Leslie writes, “Will Wednesday’s repeal of the short sale ban cause additional havoc among the beaten financials?
We don’t know they won’t extend it, replies Pete Najarian. But I’d prefer to see the return of the up-tick rule which is “a rule established by the SEC that requires that every short sale transaction be entered at a price that is higher than the price of the previous trade.”
Alexander from Missouri
Alexander writes, “I just bought shares of Royal Bank of Scotland . Good or bad idea? I think it’s a big risk but I’m also thinking a possible big return.
You’re playing for a takeover, replies Joe Terranova. I think it’s the equivalent of buying Washington Mutual in Scotland.
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Trader disclosure: On Oct. 7, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (UUP), (DIS), (WMT), (SDS), (MCD), (MSFT); Macke Is Short (TM); Najarian Owns (AAPL) And (AAPL) Puts; Najarian Owns (BIIB) Calls; Najarian Owns (GS) Call Spread; Najarian Owns (MS) And (MS) Puts; Najarian Owns (MTW) Call Spread; Najarian Owns (NCC) Calls; Najarian Owns (NOK) And (NOK) Calls; Najarian Owns (RF), Owns (RF) Put Spread, Is Short (RF) Calls; Najarian Owns (XLF) Call Spread
Terranova Owns (AAPL), (EOG), (EXM), (FCX), (FTO), (GS), (MA), (NOV), (POT), (X), (VLO); Terranova Owns (AIG) And (AIG) Puts; Terranova Owns (MS) And Is Short (MS) Call; Terranova Is Short Crude Oil Straddle
Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.: Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (CNW), (OFC), (DLM), (DRH), (DLR), (EPR), (EXR), (FL), (SLB), (LNET), (MAC)
, Shares Of Incitec Pivot Ltd., (DBC), (DBV), (SKT), (UA), (BLV), (VV), (CLB), (GWX), (IGE), (FSMXX); Virtus Investment Partners Owns Seagate Tax Refund Rights; Virtus Investment Partners Owns Seagate Technology Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of Shares Of Incitec Pivot Ltd.; Virtus Investment Partners Owns More Than 1% Of Shares Of Essex Property Trust Inc.
Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)