SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Amateur Traders Corner

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Tom Hua who wrote (4143)12/11/2000 8:49:55 PM
From: peter michaelson  Read Replies (2) of 19633
 
Not an original idea of mine, but I sold some HAND May $75 calls today for $13 and change. If I end up short the stock, my average price will be $88.

The downside to this strategy is that you have to put up the same amount of margin as if you had shorted the stock, and the upside on the position is more limited than a short sale.

All in all, it's a lower risk, lower reward, higher transaction cost way to short a stock in short supply.

Peter
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext