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Strategies & Market Trends : APMP (formerly APM) -- Ignore unavailable to you. Want to Upgrade?

To: Frodo Baxter who wrote (11030)	5/5/1998 12:08:00 AM
From: Alan Lee	Respond to of 13456

<< You don't pay taxes until they're worthless. That's ZERO, not 1 dollar, not 1 cent. In short, don't cover. >> The only problem with that is some (maybe all) brokers will require you to keep 2.50 per share in your margin account for a short, no matter how low the price goes. Also with Q&R at least the margin requirement goes from 50% to 100% when the stock is no longer marginable, i.e. goes below $5 a share. Got an unpleasant surprise on that one with my CFON short a couple of months ago.