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Technology Stocks : INTC
INTC 35.53-1.1%Nov 14 9:30 AM EST
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To: Dave Budde who wrote (579)7/18/1997 10:00:00 PM
From: Bernard Newman   of 990
 
Dave, if you have sold short against the box an equal amount of shares as you are long (known as a "hedge"), you are technically "flat". If you then sell the long shares, you'll still get long term cap gains treatment provided, as per your question, you've now held them for more than a year. At that point, you are short and at risk of a parabolic rise, as what has been happening with INTEL and others a few times per year. I am not saying that good traders cannot make money shorting stocks, but I am saying TO BE CAREFUL because your risk of loss is unlimited. How would you have liked to have been short INTEL last summer when it exploded from 109 to 124 in a few hours?

*BERNIE*

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