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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Trebor who wrote (8202)	8/29/1999 11:38:00 AM
From: ayn rand	Read Replies (1) \| Respond to of 15132

I only wish I could short in my IRA account.

To: Trebor who wrote (8202)	8/29/1999 11:53:00 AM
From: Boca_PETE	Read Replies (1) \| Respond to of 15132

Trebor: RE:< didn't understand yesterday the guy who owns an S&P index fund and asked about shorting SPY > I believe Brinker warned the person that hedging an owned S&P500 Index fund by shorting SPY might violate the new tax law that prohibits "shorting against the box" because SPY might be considered by the Internal Revenue Service to be "a like security" (after all SPY is a trust that owns the S&P500 stocks, and, the S&P500 Index Fund also owns the S&P500 stocks). YOU SHOULD SEEK THE COUNSEL OF YOUR TAX ADVISOR IF YOU PLAN TO HEDGE IN THIS MANNOR> P

To: Trebor who wrote (8202)	8/29/1999 1:23:00 PM
From: mister topes	Respond to of 15132

You can never sell short in an IRA because to sell short you must have a margin account which is not permitted in an IRA. Brinker has never told anyone to short spiders to hedge Index 500 holdings. He has only used this example versus holdings of stocks which could be hedged by spiders if they were blue chips. Also, if you do not maintain a hedge versus a long position you have no hedge at all. You are simply long or short as the case may be, not hedged.