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Strategies & Market Trends : Shorting stocks: Mechanical aspects -- Ignore unavailable to you. Want to Upgrade?

To: Banjoman who wrote (112)	8/31/1998 5:59:00 PM
From: Vol	Read Replies (1) \| Respond to of 172

thanks, banjo. you have thought this through in depth. i bet days like today it really pays off. thought about buying oex puts 2 weeks ago. that is the problem, i just thought about it....

To: Banjoman who wrote (112)	9/1/1998 8:48:00 PM
From: Vol	Read Replies (1) \| Respond to of 172

<< So even looking backward from year-end 97, assuming I received at least 2% in interest on short proceeds, I would have about broken even over the previous 5 years. So it looks like a very low cost or no cost hedging strategy. >> banjo, if your long stocks is your margin, how do you make the 2%? Seems like this strategy may cost about 5% a year for the protection. wonder if just buying index puts would do the same for 5%? vol