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Pastimes : Georgia Bard's Corner -- Ignore unavailable to you. Want to Upgrade?

To: TraderGreg who wrote (3755)	7/16/1998 10:28:00 PM
From: Ga Bard	Read Replies (1) \| Respond to of 9440

Well I coud be wrong but if I could get a broker to do arbitrage I would buy a ton of POKR and arbitrage the fire out of AVIA ... Just trying to get a broker that will allow me to it and carry the trade till the exchange. No Risk arbitrage. OK the best case is you buy POKR at a .30 then put up 3 shares and arbitrage 1 share of AVIA for a double out at $1.80. Now once the AVIA price starts to decline say to $1.20 well 1 of your POKR are freed up that you can arbitrage against on another trade which makes the first arbitrage a triple out. Now you get another 1 shares with it and sell another AVIA share short for another double out. If the AVIA drops to .60 then you got an even split so you free 1 share from the first arbitrage and one from the second amking the first a 6 out the second a quad. It is complicated but if you do the math then you will see investment vs gain. If you really nail it at first and the price falls then you free up shares to so it again. PLUS if you want you can cover on the AVIA still have all you POKR and exchange it. Please do not take my word for it talk to a broker or a professional especially one good at arbitrage. I could be totally off base here. Now remember you have to have a broker that will let you do this and carry the margin till the exchange which could be 1:1 to 3:1 which is going to kill AVIA regardless. Just have to get more details on the exchange and the slip formulation. I do not think I would be excited about holding AVIA myself but I could be wrong. Generally this is just done like over night instead of advertizing it in news with a window of time. It does appear to have set up one heck of an arbitrage. If and I say IF you can get a broker to agree to do this for you. Problem is if you arbitrage and it does not go through or the price falls and suddenly goes back up after you do the second or even the third arbitrage you cooould have a serious problem. Lot of checking to do but if I can get a verification of a 100% done deal. This arbitrage does not have a no risk factor guarranttee as an arbitrage normally does. PLEASE do not take my word on this check it out with your broker and know the risks if the price show fall and then go back up. You could get nailed. GB GB