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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Dan Ross who wrote (7602)11/28/1997 1:07:00 PM
From: CalculatedRisk  Read Replies (1) of 9285
 
Dan, RE: AMZN. Last time I checked the float was 3.0M shares and the short interest 1.987M shares! With this short interest to float ratio, it should be extremely difficult to find shares. An alternative (not as good as shorting) would be a synthetic short position:

Write the July 50 Calls (ZQNGJ)
Buy the July 50 Puts (ZQNSJ)

I have done this before, when there are consistently no shares available, with excellent results <G>! The intrinsic risk is the same. A straight short is better since you receive the cash (I earn interest on the money) and there is no time limit. With a synthetic short, to minimize the time risk, you use the farthest out options available.

Regards, Bill
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