Picks of the quarter Message Board

STOCKTALK

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 : Picks of the quarter

ATHR 5.840

-3.9%

Dec 26 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sr K who wrote (3628)	6/25/2007 11:39:29 AM
From: Elroy	Read Replies (2) of 20435

The cover of a short position is not 1% of the dwindled cash in that short position, but 1% cost on the stock price to close times the shares. I think they're the same thing. For example, here's McMannis position: Jim McMannus Stock Price Shares Value Cost Change TRMD $37.41 1.437 $53.75 $34.80 7% KRC $70.57 0.672 $52.59 $74.43 -5% Short Jim McMannus Total = $106.34 His short position in KRC has risen in value to $52.59 since his stock has fallen since he initiated the short. So if he covers, we give him $52.59 cash minus 1% of $52.59 (the commission). The formula for the Value columns for short positions is = (Initial Short Price + (Initial Short Price - Current Price))* # of shares. In other words, since the Value column calculates the performance of the short position since initiation (it goes up if the stock goes down, and vice versa), when one covers a short they basically get the amount of the Value column minus the normal 1% trading commission. No?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next