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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: ratan lal who wrote (69195)	10/5/1998 11:26:00 AM
From: SecularBull	Respond to of 176387

Shorting against-the-box means that I borrowed X number of shares from my brokerage firm's pool of (street name) DELL shares, using my own holdings as collateral, sold the borrowed shares at the market, and kept my own. To close out the short, all I have to do is buy back the shares and return them to the brokerage, or give them my shares that I already own (the latter is treated as a sale of my shares, and is subject to capital gains issues and is therefore less desirable than buying back the shares). When I short the shares, the cash comes back to me, and I used a small portion of it to buy January calls to cover myself from the stock moving up against my short position. If the stock plummets, I can buy it back at the lower price (using the proceeds from the short), cover my short, and have a lot of cash left over (which is then taxable as income at the current rate). I did two-thirds as opposed to all of my shares, I guess, from a psychological stand point. The safe bet is to do 100%. Regards, LoD