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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Gregory who wrote (55)	4/19/2001 3:53:31 PM
From: FaultLine	of 5205

But I am scared that I will have to sell my position at price much less than $60 if by the expiration date price will be higher than strike CC strike price You are so deeply underwater on this it would take forever to chip away your basis by selling low premium far-out-of-the-money (meaning safe) CC's. One interesting suggestion I heard a few months ago was to reap a useful tax loss by selling the position out, waiting 30 days, and buying back in -- or -- do just the reverse by buying (doubling) a duplicate SUNW position at the current market, waiting 30 days, and then selling the old one. This is discussed in The Motley Fool's Investment Tax Guide. BWDIK Anyone else want to take a crack at Gregory's question? --fl@i'mgoodatlosses.com

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