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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Roger A. Babb who wrote (2860)5/25/1997 4:17:00 AM
From: edgedirect   of 9285
 
Roger, you write: <<ZITL has once again edged out DDIM as my favorite. Except for the potential of having to ride out a squeeze, these two are almost free money at some point in the future.>>

My question centers on "riding out a sqeeze." Please define what you mean by a sqeeze. In my definition, a shorter has no option when caught in a sqeeze...there's nothing to ride out...because his shares are called away from him.

Or is a sqeeze initiated by fear and not by brokers calling away shares (ie, the price gets too "high" and the shorter cuts bait and runs).

I'd be very interested in starting a discussion on this thread about short squeezes, what they are, how they occur, experiences from shorters on this thread etc.

Roger, how many times have you had your short called away? It's happened to me once and it wasn't even during a sqeeze. Not a very pleasant experience :(

BTW, I'm short ZITL and have every confidence in the world the stock will nose dive by the end of the year. The risk in shorting this stock is the very real possibility of a sqeeze. Buying December puts is probably the safest way to play this one right now.

Andrew
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