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Strategies & Market Trends : Successful Short-Term Trading Strategies for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: TomX who wrote (68)	8/15/1998 7:18:00 PM
From: Merritt	Respond to of 78

TomX: Time is everything. Option premiums have a time decay factor included, short positions don't. You also have to pay a premium for an option, i.e. a price greater than the difference between the strike price and the current price...shorts don't. If someone is trading an issue that's been in a trading range, that lack of premium could could make all the difference in trading profitability. As to length of a short trade, there is none...unless the stock you borrowed gets called back by the lender, then you may find yourself in the middle of a short squeeze. If you're a short-term trader that shouldn't happen. Also, institutions and large investors, usually get interest on the stocks they've shorted...but unless you're very lucky, most on-line brokers keep the interest for themselves. Merritt