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Strategies & Market Trends : Convertible Hedge investors? -- Ignore unavailable to you. Want to Upgrade?


To: chevalier who wrote (52)1/22/1998 6:21:00 PM
From: Ted S  Read Replies (1) | Respond to of 107
 
Hi Ari,

Thanks for your reply.

One thing puzzles me. If you look for stocks that are going down, won't you be paying a higher premium on the conv?

Or, are you just "forecasting" a downturn in the stock and taking a position before the stock falls and the premium forms?

Also, do you close out your full hedge positions if a big premium forms on the downside, otherwise you stick it out to maturity?

Ted S