Holding a boxed postion overnight?

Discussion in 'Trading' started by JimBob56, Jun 27, 2007.

  1. JimBob56

    JimBob56

    Newbie question.

    I know that there is no profit in holding a boxed position on a stock (long and shorting the stock at the same time) but it seems to me it would be cheap insurance to protect large positions from any freakish gaps that might happen overnight.

    Thus you could determine the following day whether or not to pursue the position of holding or covering.

    Whats your take? Is this a good trading strategy on large positions?


    :eek: :confused: :)
     
  2. There may be tax implications as far as holding period for LT gains.