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Old 09-25-2007, 02:17 PM
NajdorfDefense NajdorfDefense is offline
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Join Date: Feb 2003
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Default Re: EMC Corporation and VMware (VMW)-Arbitrage Chance Missed?

This is not an arbitrage. If you short VMWare and Long EMC, VMWare can go up more than EMC. EMC can go down more than VM. Both can be flat and you owe the borrow on VMWare.


I agree, eventually it will fix itself, but it always takes more time than you think. You will often get short-squeezed out on names like VM. Remember, your broker can FORCE you to buyback at ANY time w/o needing to ask you.
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