Poet/Jill and thread: FWIW here is how my QCOM Jan2000 options worked out. In a cash account had bought 4 AAFAW (JAN430-pre-split)last month at 33; had 16 post split, then sold 5 at 50 about 2 weeks ago to create cash for executions.
Did a succession of executions; 3, then 4, and three again, for a total of ten executions. The delay btw executions allowed incremental buildup/rebuild of margin to allow successive executions; sold final call at 48 Friday PM.
So, I end up with 1000 shares of Q with a purchase basis of
115.75/share, which, I believe, is right about the 50 MA.
As sales were in cash, will pay tax on approx. 10K proceeds.
After tax,applying remainder of approx $6500 to basis for 10 calls executed, brings basis down to about $109.25/share.
I'll take it for a company that will hit $250 conservatively by end of this year!
Thanks to Engineer on the Q thread for the margin building successive exercising idea, and thanks to you two who took up the effort for this fine thread.
P.S.: still none of my brokers agree to provide margin against Q leaps, but I noticed when talking to them about it, that the premium has been almost completely stripped out for DITM's for Jan2001, so I wouldn't be loosing hardly any premium to exercise these also, and then I could write covered calls, if I so desired.
Regards,
James |
