Day Trade in SCO
Did a quick day trade in SCO, as oil continued to drop. I am short SCO, and intend to stay short. However, I anticipated a continued drop in oil, so I temporarily covered the position at 92.87/sh and sold it again later at 93.85. Total profit after commission was $178.07, or 89¢/share.
This will basically result in a wash sale, since the SCO short was in a loss position, and I re-established it within the 30 days (or, in this case within a couple of hours). The gain from the day trade therefore just reduces the loss in the position I am carrying forward.