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Technology Stocks : DELL CLIMAX SITE
DELL 162.01+0.6%Oct 31 9:30 AM EDT

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To: Markus who wrote (130)8/1/1997 1:23:00 PM
From: James Berg   of 158
 
<But for the people who are short, they cannot indefinitely ride their
position, because they have to put more money as the stock that he or she short goes up. In effect the
potential profit for short is limited with unlimited potential loss. Also is it possible to hold a short
position for 18 months to get your capital gain tax?>

I was comparing shorting to using put options, rather than comparing shorting to a long position. I have not shorted Dell and will not. I probably won't even buy puts until it is clear that Dell is going down, if even then.

As long as the shares are not called back, it may be possible to short for 18 months. One of the benefits of shorting is that it is usually pretty easy to identify stocks that have run up beyond their fundamentals and are due for a correction. You can buy shares of an undervalued company only to have to sit on them for months or years waiting for something to happen.

--James
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