Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 200.49

-0.9%

10:20 AM EST

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To: Jan Crawley who wrote (51489)	8/4/1998 12:06:00 AM
From: Sanzen	Read Replies (1) of 61433

Jan, However, if you initiate the arbitrage position at the same time via your broker, the margin requirement should be much less b/c the boxing effect. Based on your statement above, I called Fidelity and I was told the margin requirement is the same as if the short in ASND and long in SRA are separate. Perhaps they gave me the wrong information. I am going to call other brokers where I have accounts to see what's the answer. In Boston View's case, if he already owns Stratus and is planning to take the profit now or upon completion of this merger; an arbitrage position would provide approx. $1 1/2 additional profit per share. If one already has a position, the margin requirement may be lower. In my case if I short ASND I would be shorting against box. At Fidelity the margin requirement for shorting against box is only 5%. The trouble is I don't have enough cash to open the long position in SRA. Thanks for sharing on the topic, as this is the first time I am looking at playing the arbitrage.

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