Winston,
I'm loaded with JDSU, too, and I've never even bought it. The stock I bought and never sold was UNPH, which gives you an idea of why it has become the master of my portfolio.
I don't own any SDLI. So, I ask you and others here, what's the downside of shorting SDLI if JDSU takes off, to say, a price point of $150, beyond giving up proportional gains on any further JDSU rise?
The upside is with a significant retracement in SDLI possible due to merger factors, the gain there could be great, with little if any impact on JDSU.
I guess I'm saying that by owning only JDSU, and going short say a proportional 50% of JDSU shares X SDLI, the risk is minimal, while the gains from a SDLI slide could be great.
Am I off here? I'm not a trader and have only ever shorted once, but see this as maybe an opportunity given the position in JDSU I hold. I would be interested in the advice of those more experienced as to the validity of my thoughts.
Marc |
