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Technology Stocks : IFMX - Investment Discussion

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To: johnlea who wrote (12382)11/25/1998 1:28:00 PM
From: Marq Spencer  Read Replies (2) of 14631
 
johnlea,
Another trade that one can do, if one expects the acquisition of REDB to go through, is short IFMX and go long REDB. For every 1000 shares of REDB that you go long, you'd short 600 shares of IFMX. You'd pocket the price difference and when the acquisition is complete, you'd automatically be covered.

The risk is that the acquisition doesn't go through and REDB stock price drops on that news.
- Brian.
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