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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (9727)	2/24/1999 10:07:00 AM
From: VincentTH	Read Replies (2) \| Respond to of 14162

Herm, You wrote: If I had the extra margin I would short against the box. Why so? The margin for a box is only 5% at Waterhouse. I believe m.r. for box would be mostly in that area at other brokers. Assume that you bought the stock at 50% maintenance margin, shorting against the box improve your margin availability by 45%, not decreasing it. Regards, //Vincent

To: Herm who wrote (9727)	2/24/1999 7:10:00 PM
From: Kalman	Read Replies (1) \| Respond to of 14162

I am confused. What do you achieve by selling short against the box. Whatever you make on the long side you lose dollar for dollar on the short side and vice versa. And if on top of that you have to pay margin interest then you're just losing. I'm sure I'm missing something....