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Technology Stocks : Dell Technologies Inc.
DELL 119.41-2.7%3:59 PM EST

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To: freeus who wrote (135558)7/6/1999 8:37:00 AM
From: Geoff Nunn  Read Replies (2) of 176387
 
freeus, re: exercising your leaps

Given the revelation that your leaps are in an IRA it's a very different matter. The case for adopting B&H is much less compelling. The real advantage to B&H is that you postpone capital gains taxes, and thus have more capital working for you. This argument doesn't apply to an IRA of course. A second advantage is that you save on brokerage fees. Yet, that is becoming less and less an issue now that some brokerages charge as little as 1 cent per share on trades. All of which is to say that the rewards from B&H apply mainly to taxable accounts, not IRAs.

Re: Please explain: selling covered calls on the stock:doesnt that defeat the purpose of having it: dont I want it free and clear?


The suggestion I gave to write call options was meant as a last ditch way for you to raise cash, short of selling the stock. No question writing the calls will impose a ceiling on the stock's upside potential. I personally would want to hold the shares free and clear -- unless I held a large position, let's say one which dominated my portfolio, and in which case I would consider writing calls as a hedge.

Good luck!

Geoff
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