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Technology Stocks : Dell Technologies Inc.
DELL 122.70+0.2%Nov 18 3:59 PM EST

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To: freeus who wrote (135494)7/4/1999 1:23:00 PM
From: Geoff Nunn  Read Replies (1) of 176387
 
freeus, re: selling your leaps

My recommendation would be, don't. Hold on to all of your leaps if you can, and exercise them. Then hold on to the stock. This is plain old buy and hold and is the optimum tax strategy, as Chuzz has often pointed out. If you do this you can postpone any taxes. You in effect will be receiving an interest free loan from the gov't. Consequently you will end up with more capital -- not less -- working for you. If you believe that it takes money to make money, you want as much capital growing for you as possible.

As a libertarian, you may also derive some additional utility from depriving the gov't of revenue at a time when it sorely needs to go on a diet!

I realize this doesn't help you with your financing problem, but I would try to find some alternative to selling highly appreciated assets. (e.g, have you considered buying the shares on margin at exercise, or selling leaps (calls) next time around?)

Regards,

Geoff
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