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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (87943)	1/4/2001 6:02:03 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

ild, It can work, but I never play it that way. If you purchase the nearer term, you do have less cash outlay. But you also have less security if the thing doesn't move your way. And, in the end, you may end up buying the further out one plus the nearer one. I don't think it would happen to often, but I don't want to risk it at all. From a margin point of view, most brokers would not consider a long 2002 a full offset for a 2003 short, so you may end up with a lot of margin restricted. Again, that wouldn't bother me as long as I got interest on it. But it is a disadvantage some would have to consider.