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Biotech / Medical : VVUS: VIVUS INC. (NASDAQ)
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To: Tunica Albuginea who wrote (4381)1/7/1998 12:05:00 PM
From: LoLoLoLita  Read Replies (1) of 23519
 
Vivus heading UP now @ 11 1/4, fasten your seat belts!

Question for the tax pros:

I'm long in a margin account. If I sell short "against the box"
and cover my short with a market buy, do I preserve the initial
acquisition dates (for my initial long position) when I eventually
sell those shares for a (hopefully) L.T. gain after 18 months?

Or, is the "clock" reset to when I covered the short position?

Please people don't start flaming me for using the S word. I just
expect that with all the shares traded between 10-12, we'll see
pretty strong resistance penetrating (gg) through the prior 19-21 support range from people taking quick 60-100% profits.

I know that many here have cost bases over 20, and may be upset
to hear of this strategy, but it makes sense for me, and maybe
others as well.

Another advantage to this approach as compared to a "naked" short,
is that if the reaction downward does not occur, I can close
out the short position by calling my broker and asking them to
"net-net" the short against the long. This will mean I make
less profit than if I'd just held my long, but it offers the
possibility of making money from *both* an up-move and a down-move,
and I think everyone here will agree that VVUS has been very
volatile in the past.

Comments?

David
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