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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Cytokine1 who wrote (5686)	9/29/1998 3:13:00 AM
From: Rocketman	Read Replies (1) \| Respond to of 9719

We need to reserve enough credit to cover the short at whatever the price of it is. I tend to just keep what we have in the original credit as long as we are in the money on the short. If the shorted stock goes up, we need to reserve the buying power. If we really want to push the buying power on any one day, then we can recalculate the short credit and the buying power on that day. But it seems to me that if we are going to be buying stock to cover a short that we need to be above the 50% maint. when we cover, but we can go below 50% maint if we are just sitting on the short (but I'm not sure on this point). I think we're going to sit tight for at least a few days yet though, at least until we see what the fed does and how the markets react. By the way, my accounting agrees with yours. Rman