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Strategies & Market Trends : Options

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To: Bruce Ravelson who wrote (331)12/29/1999 9:47:00 AM
From: Poet  Read Replies (1) of 8096
 
Hi Bruce,

Nice dilemma to have, huh?

Both alternatives are sound and I guess what the big difference is how concerned you are about taxes. If you sell the call now, it's a taxable event in 1999. If you exercise, you avoid taxes until you sell the shares.

Most people on this thread are very hot on QCOM LEAPs, as am I, so I take profits on the sale of short term calls and buy leaps on QCOM with partial proceeds of every sale.

I hope this helps. A great book to read on LEAPs and the wonderful long term leverage they give is a book by Roth,and a link to Amazon.com to purchase itis in the third post on this thread.
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