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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: StockHawk who wrote (6182)9/11/1999 8:18:00 AM
From: Bob Bosco  Read Replies (2) of 54805
 
OT -Stockhawk: What are the tax consequences of this type of play? I have been considering options for quite awhile but have found it much easier to just buy G&K stocks and hold long term for maximum of 20% capital gain.
Question: When you do the initial 2 option plays is the $8600 taxed as ordinary income(short term gain)??
I assume the actual buying and selling of the shares is based on how long they are actually held and is a taxable
event at the time they are sold.

Obviously your play is a real money maker regardless of how it is taxed, but I am interested to determine actual cash flow timing and after tax return.

I have lurked on this board for quite awhile now and have found it to be the best around. It helped me discover Q, which is about 17% of my portfolio. Cisco is about 20%.
Intel is about 11%. Microsoft about 5%.
Hope I can contribute some positive info in the future.

Bob
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