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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?


To: Redwater1 who wrote (36033)5/14/1999 12:16:00 AM
From: Jon K.  Respond to of 122087
 
>>> "boxes" a stock?<<<

Ex: long 100 shares of ABC & short ABC 100 shares at the same time.

Why?

1. If you think the stock won't be shortable in the near future. (You box and unbox long position while leaving short position untouched)

2. You think the stock will drop in long run but when it is very strong at the moment. (to cover your ass for a while)

3. Also some people box a stock and sell both call and put options.