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 : VerticalNet, Inc. [VERT]
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: HG who wrote (819)2/25/2000 9:42:00 PM
From: Eric  Read Replies (1) of 1094
 
interesting strategy ... but you are essentially doing a leverage play ... your max profit is 114 per share if you hold the option til August and let it expire worthless. That does mean you will tie up the capital in your account til then. If you cover before August you will make less than 114. On the flip side, if you have the money to buy the stock straight here, you will probably make more money by August than the 114 per share you limit yourself. By August it would have gone through at least one stock split and two earning announcements. In addition, by owning the stock you can sell out of the money options to get additional income. Thirdly, by owning the stock you will have a shot at qualifying for long-term capital gain which will be taxed at the maximum rate of 20% versus 40% for regular income. 20% difference is no small change if your gain is large in the case of VERT.
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