The only problem I found is that when shorting I don’t get credited the dollar amount versus my stocks on margin. So I still have to pay margin interest for some of my longs, and don’t get any interest for my shorts.
I thought that when shorting a stock, I borrow stock and sell it. But the “borrowing” incurs expenses and the expenses are covered from the interest generated by the cash from the sale of the stock. Am I wrong ? Do correct me if I’m wrong.
You also said:
This makes me tend to use in the money puts, that have another advantage for the small investor that premiums are automatically deducted from your profits, so your tax is reduced without itemizing.
