Electric,
(Chris and Dennis, feel free to chime in here, as well.)
I've been long Dell since June (Avg. an adjusted $44) and don't plan on selling any. In fact, I've been looking to add, but like you am waiting for a market slide where I could take advantage of the 2X beta you refer to. I've gone to cash in everything else except PFE and LU.
I know that you consider it crazy to short Dell, and I agree with this thinking wholeheartily. But if we're looking for a slide, what's wrong with keeping my long, while going short for the shares I want. The worst case scenario is that I have to cover at a higher price I would have ended up paying anyway. And if it does run into the seventies, my greater long position will soften the whack.
My reasoning here is that with a market slide, I could get more shares with the same money without going the options route, for which I just don't "get" the premium gyrations (or don't want to), nor is it a possibility with my brokerage (Farsight), anyway.
TIA,
Marc |
