Colum

ASSet_MANagement Wrote:
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> I'd say there might be M&A risk which would roast
> you.

[have to run, but responding hastily...]

depending on your conviction for a takeout, you could buy an OTM call against your short to floor your downside. even if you don't, the price of these options (and skew) will give you some color as to the market's perceived likelihood of M&A activity happening (at what level and when).

agree with bchad about SI vs ADV; this is especially important if you're taking an outsized position.

also, how bad is the borrow? a lot of big funds/banks have an edge in locates which can give them an edge over you, so be careful.