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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Lucky888 who wrote (37936)	6/7/1999 7:24:00 PM
From: Mama Bear	Read Replies (1) \| Respond to of 122087

Lucky, when I figure out how to calculate anything but the nominal return on a short I'll let you know. What if I have 1000 shares of WXYZ long and paid for at 100, and short 1000 shares of ABCD at 20 using my buying power? Some people will use the money that a successful short sale throws off to short even more, and add any gain on the return of the pyramided shares to the return. That has a bit of validity, like adding dividend reinvestment to your long's return. If the ABCD from the example above falls 50% on price, I'll only have 10k in the position. The long position will always have the 100k invested tied up, whether it falls to 0 or goes to the moon. I imagine this argument will never be solved to everyone's satisfaction. Barb