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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (11007)	6/2/1998 2:08:00 PM
From: Timothy R. West	Respond to of 14631

Long in one account, short in another account. The strategy has NOTHING to do with taxes, we all know the short-against-the-box rule was done away with. The point is to be FLEXIBLE in your trading. Again, let's say you are long and short at the same time. Yes, you tie up your capital, but at the right clearing firm, that is not a problem. Now, if you sell your long then guess what, you are SHORT because you still have your short position. Buy back your former long position and now you are FLAT. You now don't have to wait for a plus-tick to SELL-SHORT. The whole idea is to avoid the plus-tick rule. Some firms have gone to more time and trouble to help you avoid the plus-tick rule. The NYSE is just as easy and there are derivatives to help you out too. The derivatives are called "MARRIED PUTS." Your clearing firm can set them up for you. You buy stock and buy DEEP IN THE MONEY PUTS that your clearing firm sells to you. You then sell the stock you bought and guess what? As you sell, you get short and there is NO PLUS TICK to worry about. Most traders use these married puts to drive a stock down, especially THINLY TRADED stocks. These MARRIED PUTS are used EVERY DAY to an extent you can't believe. If you want an example of the former, simply go to All-Tech (ATTAIN System) and talk with them about how they set you up to trade stocks. They have an 888-ATTAIN (?) phone number.