Barry,
>>When the stock is dropping and you want to sell your
long position in order to expose the short position,
you legally still need an uptick/upbid.<<
Even if I bought the stock long at one price and sold it
short 10 minutes later at a different price?
What if I have two accounts, one where I short the stock,
one where I go long? Surely the uptick rule couldn't apply.
>>Also consider that if the stock drops below $5, it may
no longer be considered marginable and you are at risk of
getting the stock called back.
At Datek, MANY stocks are not marginable, yet you can still
short them. It shows the non-shortable stocks that with a "NS"
(no short). I would not normally hold a short below $5 anyway.
>>> This assumes you can close your short before the move up.
I might not maximize my profit if it's moving up/down fast on
news, earnings, upgrade/downgrade, but I'd probably not lose
more then 1/8-1/2 point. Of course, if that's the extent of
the move, I break even, but usually it will move higher/lower
so I can scalp at least 1/2 pt.
>>If it gaps and does not continue up, you will be in a
break even position still.
Not if I keep the "Box" after the gap up or down, until I
can determine direction. At least it's a break even.
Better then a loss.
I think I'll paper trade this strategy first and see how
it goes.
>> Since I am short EGRP and my indicators are pointing down, I
am looking for the opposite of Viagra.<G> Any suggestions?
When I was in camp, the story was Salt Peter was mixed in
the mashed potatoes. If that doesn't work, the pending suit
by N.Y. Attorney General, as well as some S.I. members who
got burnt when EGRP crashed may provide the downward
impetus you need.
Regards,
Skane
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