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Strategies & Market Trends : Selling Puts: Have Cash Will Travel

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To: Tom K. who wrote (1158)4/9/2000 11:01:00 PM
From: Robert T. Quasius  Read Replies (2) of 1235
 
Don't forget one advantage of LEAPs over shorter term options. If you keep a LEAP for more than 12 months, the gain qualifies as a long term capital gain for tax purposes.

I just sold my first LEAP puts, Conseco Jan '02 $7-1/2 puts. I think the stock is near a bottom and is way oversold. If I get put, my net price will be only $4-3/8, for a stock that was selling for $50 not too long ago, and is easily worth $30 IMHO.
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