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Technology Stocks : Winstar Comm. (WCII)
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To: Steven Bowen who wrote (9350)11/18/1998 3:02:00 AM
From: SteveG  Read Replies (1) of 12468
 
AaHA! Dohhh! <..an effective position of being short 50,000 shares, in this instance at 29 3/8..>

It may take awhile, but I DO finally get it.

I now see that at *29 3/8* (not 30), the synthetic short trades *exactly* as a short (and reviewing, this is also exactly what Brian clarified).

It still seems this strategy offers greater leverage (as options will), and therefore greater return or loss on principle, than a corresponding "true" short. But I have to admit I'm not clear what the margin requirements of the synthetic short are relative to a straight short (which requires 50%).

And just as NW suggests, can be employed married to a long position as an arbitrage conversion or box short.

Glad you are handling finances, Bow. And presumably we would contract with Brian (if we can afford him) for our market risk strategies.
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