I am going to try your fancy footwork buying and selling the same stock at the same time.
Is it correct that I should do this in separate accounts so that my broker doesn't catch on?
I expect that I will have no taxable income from these trades because the gains should equal the losses and I can deduct the losses from the commissions against my interest income from CDs.
Maybe I will just think about this over the weekend. I am not sure I have it correct. Would either of you two expert "market makers" like to manage some money for me buying and selling the same stock at the same time?
LOL, yeah. As you know I was long before the price spike. Then I sold everything I could. As the price sat there at 6.50, I found myself wishing I had sold more at that price. Then I read a post on the **** board by a daytrader who seemed to have an accurate picture of what was going on with the stock. (That last sentence was not a typo.) He pointed out that if the run-up was literally a mistake, then shorting at 6.50 and waiting for a descent back toward 5.25 should be a good bet. So I sold short, and I still don't know whether it was a good bet, but I made as much money that way as I did on the long side.
The day trader has a little Yahoo group for shorting ideas, btw, the link is in his messages on the **** board. Of course most of the ideas aren't as nice as that one. Or they don't make as much sense to me. But it's interesting how often some stock, somewhere, goes up 50% or more in a couple of days on no news -- or even on bad news.
I once saw a tv documentary filmed in an eastern European country which showed a place where many people had illegally tapped into the power line. There were wires everywhere. Fortunately, they didn't show the bodies of the electrocuted.