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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?


To: Don Westermeyer who wrote (16054)12/11/1998 8:22:00 PM
From: Allan F  Respond to of 18691
 
One problem with using two different accounts, and one advantage of boxing with brokers that allow it is the margin requirement to carry the position is only 5% (this may vary with brokers, I don't know.)

I find this is very important feature. Basically, it allows one to weather the storm so to speak when ordinarily one would be called in due to margin.

Had I know about that virtue of boxing last May (instead of this fall) I would not have been forced out of ZONA at such a regrettable loss.

Strictly speaking one should not play it so close to the wire, but this is the real-world everything does not always go as to plan and its nice to have additional options available.

Also, there used to be tax advantages to boxing, but those have all been closed and IMO are now liabilities.

Hope that helps
-Allan



To: Don Westermeyer who wrote (16054)12/11/1998 10:52:00 PM
From: Roger A. Babb  Respond to of 18691
 
Don, anyway to short this deal? biz.yahoo.com Wow, look at the huge dilution!