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To: DavidG who wrote (36172)7/13/1998 12:06:00 PM
From: IceShark  Respond to of 53903
 
David, What you describe is sometimes referred to as boxing. It works great if you are looking to get net short quickly in a down draft or where shares to short are hard to come by.

Even if you are a smooth operator like MB and have finagled a short rebate you might want to check out what this is costing you in interest when you are out on margin. With MU it is usually pretty easy to get a short executed, so I not so sure the strategy is all that useful overall given the interest cost.

On a stock like AMZN where most brokerages have no shares to lend and the MMs will drop the sucker 5% without an uptick it is the only way to play the game if you can ever get that initial short established.

Regards, DWW



To: DavidG who wrote (36172)7/13/1998 12:31:00 PM
From: johnlea  Read Replies (1) | Respond to of 53903
 
<<I didn't think it was allowed to short MU while you had an equal long position, but since it is allowed this works a lot easier for me in getting fills quickly and actually at better prices>>

david,

i didn't think this was possible. how do you do this? if i submit a 'buy' order to a stock that i have a short position, it automatically covers the short position. (this is in eschwab).