Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Shorting SPY for fun and profit. -- Ignore unavailable to you. Want to Upgrade?

To: studdog who wrote (1)	11/1/1997 12:49:00 PM
From: tom pope	Read Replies (2) \| Respond to of 346

timely question - i've been thinking for some time of an intermarket hedge, shorting the s&p futures and covering with a long in the russell 2000, to get the small cap effect without picking individual stocks. i don't know what the current margin would be with futures brokers for such a position tho - they probably sent their requirements to the moon following last monday. i'll wander over to the lind-waldock site to see if they post current requirements. tom

To: studdog who wrote (1)	11/1/1997 8:57:00 PM
From: Esteban	Read Replies (1) \| Respond to of 346

Karl, I like your idea, been picking up selected techs. So far AMAT QCOM SGI, looking at WDC ORCL ANDW. Missed SYMC. I'm only spending 1/2 my cash, in case of further weakness. I suggest you define SPY's for those of us unfamiliar or slightly familiar with spiders. What do you think the advantages are of hedging over holding cash reserves. How much do the the costs/losses of purchasing SPY shorts reduce one's return from the techs if the market rebounds?

To: studdog who wrote (1)	11/7/1997 8:41:00 PM
From: Esteban	Read Replies (2) \| Respond to of 346

Karl, That darn SPY just isn't cooperating. It's been keeping losses pretty well under control these past couple of days compared to the techs. Are you still in or did you ever buy into some techs? Like I posted earlier, I bought AMAT QCOM and SGI. I'm thanking God for small favors that WDC never gave me the entry point I wanted. I hated to sell AMAT and QCOM today, I think they have more left in the tank. The downside risk of holding them through a possible market meltdown was more than I could stomach. Keep on posting. Creative ways to limit downside riks are a top priority for me in this market environment. Esteban