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.
Strategies & Market Trends : Gorilla and King Portfolio Candidates
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: BDR who wrote (39332)2/16/2001 11:11:07 AM
From: Dr. Id  Read Replies (1) of 54805
 
For example, with QCOM at about 85 you could sell the '02 LEAPS 60 Calls for $35 or the '03 LEAPS 70 Calls for $34. That is cash
in your account now. You don't have pay tax on that until the LEAPS either expire worthless or are exercised in 1/02 or 1/03
respectively.

Actually, you could do this to lock in a long term gain prior to the one year holding period. However, I believe that it's against the IRS rules to sell covered calls more than a strike price below the current price and claim the tax advantage. At least that's according to my accountant. Though he also says that it's highly unlikely that the IRS would ever catch it.

Dr.Id@shouldhavedoneitwithallofmystocksayearago.com
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