JDS Uniphase (JDSU) Message Board

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Technology Stocks : JDS Uniphase (JDSU)

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To: ggamer who wrote (8020)	3/27/2000 4:25:00 PM
From: t2	Read Replies (1) of 24042

I am still holding on to my June 85 and 100 calls. I want to change those to LEAPS now that they are available but I am not sure when will be is good time to do the exchange. I am still learning when it comes to options and leaps. I still have to pay the taxes to do the exchange or is there a way to do it without helping the gov with more surplus money coming in day in and day out? You can always exercise your options and take the shares (now or later). The cost of the options gets added to the cost of the shares (ie the strike price) and this becomes your new cost of the JDSU shares, assuming you don't hold any shares now. This way you will not realize any capital gains. Your options are deep in the money and probably don't have much premium left anyways. AFter exercising, you could sell covered calls or buy puts to protect your share position from time to time. Therefore, you would realize gains or losses on those options while the gains you get from the shares upon exercising the June calls will remain UNREALIZED and not subject to tax (until you sell the shares)

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