SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : The Naked Truth - Big Kahuna a Myth
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: yard_man who wrote (32728)4/12/1999 1:41:00 PM
From: J. P.  Read Replies (1) of 86076
 
I don't like covered calls. They cap the upside, and only provide limited downside risk. Especially a stock like AOL where it moves big and the options premiums don't erode. Plus, if I have to give up the stock, then have to pay all the capital gains taxes outright anyhow.

What I like about using puts as hedges is, yes Uncle get's his money anyhow if you're wrong, but if you're right you can make a nice score, pay uncle, and have plenty left over and still have the stock. If you just sell the stock outright, and write the tax check, then you've not utilized capital to it's maximum potential, IMO.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News