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.
Technology Stocks : JDS Uniphase (JDSU)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Guy Gordon who wrote (4156)1/9/2000 9:42:00 PM
From: cthruu  Read Replies (1) of 24042
 
My comment was in response to Rich1's message. As I understand, he had a problem because MM's played a game with his covered calls. All of us have been through those games more than once.

I also agree with you that "trading" stocks like JDSU will build up large tax consequences. I am not selling my JDSU or QCOM, nor am I selling CC's on them, because they are in my long term hold portfolio. I do believe that a decision to sell should not be necessarily held up just because of its tax consequences. There are other ways of offsetting taxes and if you have to pay some tax on your earnings, so be it. If it is a prudent decision, it should be implemented regardless of tax consequences.

Everyone has a different trading strategy. I personally do not like writing covered calls because they limit the upside and if the stock tanks, you are stuck with it. They certainly have a place as a strategic play, when written at the top of the channel- provided one is going to buy them back at a profit. They also have a place if you are trying to generate a paper loss on gains of the stock - short and cover at a higher price because you are still holding the stock.

Your point of not giving up 500% gain is well taken. I am in the same boat. :-)

Ragards:

GP
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