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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: lml who wrote (145234)	10/1/2006 1:19:12 PM
From: rkral	Read Replies (2) \| Respond to of 152472

"Selling 1/2 a position & shorting the balance is NOT a neutral position. It is clearly a net short position, & it is a bit different then selling the entire position." Start with 1000 shares ... sell 500 shares at $X ... short 500 shares at $X. That leaves us with 500 shares long and 500 shares short. Stock price goes up $10/sh ... we're up $5000 on the long .... down $5000 on the short. Vice versa if the price goes down $10/sh. Overall we've neither gained nor lost. How is that not a neutral position?