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.

Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Investor-ex! who wrote (8074)	2/22/1998 9:53:00 AM
From: J.S.	Respond to of 13594

You are right X. The irony is that of the short stock and the short put it is the short stock that is the most risky. At one of my brokerages I am allowed (it is the same for all customers) to short but I can't sell a put on that position. I was told that was too "risky" for them. As you say it is a hedge and as I stated above, it is the short stock that is the riskiest. Actually a short stock is as risky as a naked call it is just that it appears that you can lose more money that way. If a house required the same margin for each call as it would for a hundred shares of stock it would come out the same for all. I don't know why they don't do this? Good Luck on your AOL short, Joe