Joel,
Well, I try not to use margin except in teeny doses. Special circumstances this summer, and in a few months I will use much less if any. I can take defensive measures, but they'd limit my upside for a while, so I'd rather see a reversal now. I'm actually thinking of unwinding the position on the next run up. I still think SONE may surprise slightly and maybe e-Citi news will help, taking EDFY up a couple of points; I just guessed wrong on the bottom. Once that wears off, though, I don't see much upside until the deal closes. I'm starting to get nervous about the entire market, and am starting to look for deserving companies to go short with, perhaps with put bear spreads. This fall I'll dribble some money in long, particularly if the market has tanked on Y2K fears. I will be keeping my eye on SONE.
This would have been a whole lot easier if it had been a cash buyout. But I keep learning, and I'm still making just enough money, so I can't complain much.
Cheers, Tuck |
