Craig; If the big boys saw that, they would GAP up the price..
then take their stock out of margins..when you short you borrow
stock..the lender can demand it back at "any time" and has the
edge..if a big lender sees were he can pull his stock out of
margins..( that calls it back )..then the bokers have to buy you
in, so you can get "bought in" even with out "buy stops", for that
reason I say never short naked..always have calls to cover your
rear..the call position in Jan 98 @32.5 is mostly cover for a
professional shorter..if you see that position sell off then
you will know she is going to do a tumble, but it can happen fast
you have to check it every day. BTW I charted that position, it
was mostly bought last NOV for about $3 , it's been used over and
over..good shorting takes a little luck, and a lot of planing.
Next year NXTL could be a hot one, but the thing to buy is calls
99 leaps, and sit back, once and if your leaps come into profit..you can short away with no real risk, and if the stock bounces like AOL,
and you don't get to greedy you can buy back and short several times
or more in a year on thoes leaps. At some point you may want to sell
the leaps..but only when you'r convinced shes played out.
Shorts with out cover, can get sent to the poor house. Buy stops
or none..you can get bought in when the broker says he had to buy
you in, and you have no choise but to take his word for it.
Jim |
