Was AMR marginable when it was over $5/sh? Will it be marginable if it goest back up?

Question

I'm thinking about shorting. What are your thoughts?

Answer 1

Yes it WAS marginable when it was over $5, if the stock climbs over $5 it will be qualified to be marginable, this does not mean that brokerage firms will let it be margined.

Although the rules states that no stock selling at $5 or lower is marginable, this does not prevent brokerage firms from prohibiting certain stocks over $5 from being used in margin accounts.

Shorting??, Your best profit will be 5 points.  However, if the stock is not marginable, that means that borrowing the stock will be more difficult, since some of the stocks that are lent out are from margin accounts, no margin, no lending.