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Strategies & Market Trends : SHorting Stocks: Education/strategies/techniques

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To: Early Bird who wrote ()2/23/1997 1:31:00 PM
From: Senthil Kumar   of 99
 
Getting shares to short -

We know that in some cases, it is hard to find shares to short.
eg. ZITL, XCIT etc.

The following strategy was mentioned by Chi-X.

The idea is to put in a limit order way over the current trading
range. For eg. we kind of knew that VVUS had a maximum top of
around $85, so we put in a limit order to short VVUS at say $120,
a price, we feel, it is never going to reach.

Once, we feel that the time is ripe to short the stock, we simply
convert the limit order to a market order.

I would appreciate hearing differeing views on this strategy.

Senthil
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