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 : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (13832)	2/3/1998 8:33:00 AM
From: James F. Hopkins	Respond to of 94695

Hi Bill; Well it has some advantages, I tried the long sell calls thingy that I did not like, you gota buy the calls back before you dump the stock. The short stock & sell puts , is also much cheaper. Than buying stock, ( but always have calls to cover upside risk ) brokers and or MM often pick off (stop loss buy orders )..they see the numbers and know when they have enough to have a ready market..can push the price up just a little and trigger the stop losses, then they dumb back what they had to sell to get it up, to the stops losses at a profit, and then often short to the rest to the shorts covering..brokerage houses short a lot more than they want the public to know about. They work a spread that shorts to shorts getting bought in, they know the position of things and can just about stay at the top of the short totem pole. Your friendly broker is not so friendly when it comes to dollars. They don't just lend out stock for you to make money with, or get the little sell/buy commission, in fact they most often pay interest to large mutual funds on the stock they borrow.. ( that info is in a KAUFX earnings sheet if you care to read it and put 2+2 together ) KAUFX makes dough lending out shares , ( they also short some too ) anyway brokers do not find shares for clients to short if they can not see an angle, bet on it. Jim