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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: David H. Zimmer who wrote (7637)	7/2/1999 12:59:00 AM
From: Scott Williams98	Read Replies (1) \| Respond to of 20297

Hi David, You can bet traders shorted CKFR when she looked like she would buckle at around $40.00 a couple of weeks back, then bought back the support around $25.00 (not sure how much was "boxed" though). IMO, I'm sure traders with much more experience than me saw it too. I'm still looking at the SHORT term prices of CKFR with caution at this point, but like the action so far. Thanks to you, TLindt, BennyBaga, etc. for your insightful posts. Like others have said, this thread ranks high (in my book) as far as "quality of content" is concerned. Best of luck SCOTT

To: David H. Zimmer who wrote (7637)	7/2/1999 10:11:00 AM
From: g_m10	Respond to of 20297

David, Thanks for the explanation. I recall now that shorting against the box is illegal, at least here in Canada. It means that one is not allowed to have the stock on the account and short it. But there always ways around, of course. One of them is to have two different accounts: one for short and the other for long.

To: David H. Zimmer who wrote (7637)	7/2/1999 10:23:00 AM
From: Triffin	Read Replies (1) \| Respond to of 20297

David .. Assume a trader went short at $35. When the stock dropped to $25, the trader could have "boxed" the short, i.e., bought an equivalent amount of shares without covering the short. Therefore the short is still alive. This technique is used when the short expects a "dead cat bounce". The long shares used to box the shorts would then be used to "cut the legs" out of the bids at the top of the bounce. Remember, to initiate a short position on a NASDAQ security one needs an uptick, an increased bid or a zero uptick to initiate a short sale. When a short is boxed, the shares that were purchased long are sold at the bid, a technique used to drive the price down, usually to lower levels than prior lows. Can also accomplish the above effect via Long stock plus Long ITM puts .. 'bullet trade' using your 'long' inventory to drive down the bid .. buy in later and exercise out .. Jim in CT ..