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

To: Tatnic who wrote (60886)	10/19/2000 10:01:43 AM
From: knows_picker	Read Replies (2) \| Respond to of 122087

MPPP just became marginable again.... free money again...

To: Tatnic who wrote (60886)	10/19/2000 10:01:58 AM
From: George Cowsar	Respond to of 122087

What I meant was you can sell a call, say at 100 and buy a put at 100, that this IS a short position (not that it somehow protects a short position). BTW it has a delta of 1, whereas just buying a put at 100 has a delta of about .5 (assuming the underlying is trading at 100). If you own the stock (long) then selling a call and buying a put is a collar and protects your long position (you will not lose if the stock goes down since your collar short). Since tax laws have changed, I think this may not be as popular anymore. Brokers love it since they get some more commissions. If you are that sure that the stock is going to tank (or the market as a whole), then why not sell your long position and short something.