Hi, like most of you, my portfolio got hit. I am a Canadian living in France and have a money manager taking care of my CDN portfolio. I got worried about this correction end of February but my MM was complacent and, as far as I am concerned, sat on the tracks and just let the train hit. I am not happy.
I started doing a bit of research to see what could have been done besides selling everything and found two possibilities:
One was to use an options collar on the holdings I was worried about and the other was to 'Short the Box'.
If I understand this correctly this means shorting the stock you own by the same number of stocks you own.
Example: Short 100 shares of BMO at $70 if it falls down $37 you still have a $70 value: $37 stock price plus $33 cash.
Do any of you have experience doing this? Are there any tax ramifications when covering your short?
Any opinions would be highly appreciated.
John
I started doing a bit of research to see what could have been done besides selling everything and found two possibilities:
One was to use an options collar on the holdings I was worried about and the other was to 'Short the Box'.
If I understand this correctly this means shorting the stock you own by the same number of stocks you own.
Example: Short 100 shares of BMO at $70 if it falls down $37 you still have a $70 value: $37 stock price plus $33 cash.
Do any of you have experience doing this? Are there any tax ramifications when covering your short?
Any opinions would be highly appreciated.
John