I expect some of these institutions have collars on - ie. matching long and short positions to freeze their cost. That's the safe way to play if you're not sure which way it goes, but don't want to give up your position. The main point is, you don't have to go to the market in a big panic to cover, since you already own the shares. No magin calls with this type of trade, so you can unwind slowly at your own pace.

I tried to do the same thing with my discount broker but they said I can not have a long and short position simantaneously in the same account. I was going to put a short position to close the voilatility until the mining law and other political issues look greener. The only downside is i have to be nimble enough to cover the shorts when the SP rockets.

I'm not surprised. Different rules apply to us little guys. If a stock has exchange-traded options, you can achieve the same effect buying puts. Unfortunately, ARU doesn't have options.

ebear