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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?


To: steve goldman who wrote (4192)2/16/1999 3:10:00 PM
From: MrGreenJeans  Read Replies (1) | Respond to of 4969
 
Shorting Against the Box

Please set me straight-

1. I thought the IRS has modified shorting against the box rules. I thought one was allowed to short against the box for up to 10 months out of the year and the position must be taken off on the last day of January and be exposed to market risk for 60 days.

I also thought that if one held through the 60 day period it was a taxable event.

2. On another topic what hedges do you believe work best, if any, in a bear market? Of course it depends on the preferences of the investor but which hedges do you favor? Going 100% to cash, shorting the S and P, buying puts or a combination of hedges?

Thanking you in advance.