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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club
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To: Justa Werkenstiff who wrote (11457)1/27/2000 12:43:00 AM
From: marc ultra  Read Replies (1) of 15132
 
I have to say I would not be happy with an increase in margin requirements as it could greatly hamper short term flexibility. With my SPY short position I didn't realize how much I was into margin and it took me some some time to move money around accounts to offset this and stop paying interest. Since I'm holding a large position in my volatile biotech ENMD, I realized a solid drop in the stock would put me back paying margin interest again and I hate to think of the stock blowing up while the S&P makes a big rally. If things do deteriorate, I decided I would buy some of the 2beta short S&P fund with cash I have in my other account and cover an equivalent amount of SPY's. Now that I've done it both ways I clearly see the advantages and disadvantages of hedging the 2beta short fund route vs shorting SPY or QQQ for that matter. The mutual fund route is probably a lot less stressful and you don't have to be on top of the margin situation every day but the SPY/QQQ short route has the trading flexibility and is probably cheaper to execute when you figure in a web broker and ability to trade in real time. Anyway if the market continues falling and my bloated single stock holding can go up I should do fine<g>

Marc
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