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Strategies & Market Trends : Options

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To: SecularBull who wrote (1826)1/27/2000 9:51:00 PM
From: y2kate  Read Replies (2) of 8096
 
Hi LoF-
True- but if the stock started to jump, one could always cover one's puts and go ahead and buy back in. Taxes? Since I failed to sell most of my calls at a fantastic price partially out of fear of the tax bite--I've decided that putting undue weight on taxes is like the tail wagging the dog. If the stock does stay down here and go lower through the next quarter,as many seem to think, it seems logical to sell your position and sell puts. Voltaire said he sold half of his holdings last Friday. jmanvegas says this downside is due to institutions selling out, not the little guy. If we're buying on the way up- why are we not selling on the way down? It's a new way of thinking for me, because I've always been long, a buyer of calls, a holder of stock. So I'm probably a lot of hot air in terms of what I'll actually do. But I guess thinking of little else these last few days has led me into considering this idea, maybe seriously, I don't know yet.
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