Long shareholders can take advantage of heavy short selling in their securities by lending out their â€śin demandâ€ť shares and earning stock loan fees by lending out their â€śfully paid forâ€ť shares. Stock borrow fees are calculated daily and stock loan transactions are done on an â€śovernightâ€ť basis (the stock loan can be terminated or recalled daily.) Below are the top 25 most expensive U.S. stock borrows with at least $50mm in short interest.
The stock loan daily interest calculation is: Shares Lent * Stock Price * Borrow Fee / 360 Days.
Lending 100 shares of Beyond Meat would generate $68.84 of daily stock loan revenue or $24,781.87/year on a $16,291 long position.
100 * $162.91 *152.12% / 360 days = $68.84 daily earned interest
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Managing Director Predictive Analytics, S3 Partners, LLC
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