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Strategies & Market Trends : Roger's 1997 Short Picks

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To: CalculatedRisk who wrote (7759)12/4/1997 2:16:00 AM
From: hasbeen101   of 9285
 
Earlier, I suggested a "synthetic short" position using options IF AND ONLY IF there are no shares available to short (like AMZN)

Bil, the synthetic short is nice in two ways. Firstly, as you say it can get around the problem where you can't borrow shares to short. Secondly, depending on how much margin your broker requires, it doesn't just give you a synthetic short, but a synthetic LEVERAGED short (i.e. synthetic futures). Obviously this is a double-edged sword, but if you're making superior bets the leverage is an added attraction.
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