Many people asked me about this question, so I think it is easy for me to answer once here instead answer many times seperately.  There are already some professional articles regarding this topic, please refer those articles.

Here is what I think about this question:
Short Ban has negtive impact  to SKF, SEF  and all financial short ETFs. It drys up liquidity and increase the cost of trading. You may pay more for SKF, SEF ETFs and calls at same intrinsic value. SKF also has down side risk because of that.  But this will be short term. Short Ban will expire on 10/2.  I don't think it will ban forever. Because it will hurt Financials for the long run as much as benefit from it. IT destroys market integrity. It will also increase market volatility without short and put hedge. Just remember, short and put are hedge tools. Most institutions use them as hedge for their long position. If they can not use those tool, the only way to deal with down side risk is sell their long position.  Look at China market, no short allowed there, but market drop 70% from the top before this rally , much more severe and volatile than US market. Shorts and puts are also potencial buying power.

For SKF holder ( I also hold it), sell covered call will be good way to protect short term down side risk, because SKF calls are so fat that the near money call even worth about 20% stock price. So you have 20% down side protection without selling your SKF.  But the side effect by doing this is you may give up the chance to make quick money if SKF sharply raise.


Take care.