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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: scotts who wrote (31057)4/18/1999 3:21:00 PM
From: AD  Read Replies (2) of 122087
 
>>BOX<< Sometimes it's simpler to comprende than it looks.

Here's one reason for a box , holding a long and a short.

You are short CYOE at 6 yet you expect it to move up, for whatever reason, short term. So you go long while also holding the borrowed shares. This protects your capital while allowing you to retain the borrowed shares. Sometimes you just may not be able to cover and get those shares again. Meanwhile, you can profit on the pop and close the long position when you decide that the upside risk, or move, is over.

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