Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: majormember who wrote (7498)	3/6/1999 11:43:00 AM
From: sandbag	Respond to of 59879

Skane, "Even if I bought the stock long at one price and sold it short 10 minutes later at a different price?" Entering the box position is not the problem. It is when you exit the position via selling the long position first that would be illegal. "What if I have two accounts, one where I short the stock, one where I go long? Surely the uptick rule couldn't apply." Actually it does. Even if one of your accounts is in your name and the other is held by a family member with you having power of attorney. I was actually just rereading this exact scenario on the NASDR site and can look for the exact URL if you wish. Don't think I am trying to rain on your parade. Boxing is a very useful strategy. I think you just have to keep in mind what you need to do when exiting. In essence, when selling the long part, you are actually creating a short position, as opposed to an even position. When you create this short position, all the short rules come into effect, even though you are already short the shares. Also, stocks may be called back for reasons other than dropping below $5. An example would be a change in margin requirements on a particular stock, and no longer having the margin to cover the position. Although a margin call would be the correct action by the broker, there have been occasions where the broker has closed the short position without notice. Just food for thought. Best Barry

To: majormember who wrote (7498)	3/6/1999 12:12:00 PM
From: dealmakr	Respond to of 59879

Skane, Steve Goldman had a good discussion on boxed shorts a while back. Message 7852132 Just be careful not to put yourself into a compliance violation scenario. Good Trading Dave

To: majormember who wrote (7498)	3/7/1999 12:13:00 AM
From: shasta23	Read Replies (1) \| Respond to of 59879

>>When the stock is dropping and you want to sell your long position in order to expose the short position, you legally still need an uptick/upbid.<< Even if I bought the stock long at one price and sold it short 10 minutes later at a different price? What if I have two accounts, one where I short the stock, one where I go long? Surely the uptick rule couldn't apply.<< Hi SKANE! It's quiet a while back but Steve Goldman(you can scan for his name on SI and PM him) suggested the combined long/short position to be able to initiate a short position without the problems of the uptick rule. And he is the head trader with a brokerage firm (yamner.com). So i would assume it to be legal!! Stefan P.S.Just saw that David Hayes and Peter Matzke answered your question in the later posts..(HI PETER!)