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Strategies & Market Trends : Ask DrBob

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To: Drbob512 who started this subject9/24/2001 6:09:27 PM
From: Louis V. Lambrecht   of 100058
 
caveat in short selling. I'm learning every day.

Was hovering in the CBOE startegies discussions and came on :
cboe.com
(However, certain risks do exist with a short stock, such as being "called-in", when the lender of the short stock reclaims the position from the borrower

I didn't shorted stocks outright in the past, was trading options instead. Will certainly keep doing that way.
It is not unconceivable that, in a bear market, more lenders would have to reclaim their stocks in order to sell them to cover margin calls.

I knew I was missing something in the short selling strategy. <ng>
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