Hmmm, I'm not sure how you would close it after the earnings are
released but before the opening bell Tuesday. Are you implying
that options trading continues after the close, and that an
individual can participate? Y'know, it never occurred to me to check
on the trading hours for the Chicago Board Options Exchange, though I
think the Pacific Stock Exchange (where options on a lot of high-
techs are traded) is synchronised with Wall Street.
Re. taxes, I'm not sure of the rules exactly, but since all of
your trades are within a 1-year time span, they're all short-term
cap gains and thus taxed like regular income, so it doesn't really
matter if you have a "wash sale" or not. If your gamble succeeds,
you'll have enough swag to consult a competent tax professional.
Re. Oct 125s, you've got to be joking about "another earnings release
to encounter". The only reason to hold them is if you think the
stock will rise between now and October at a faster rate than the
(high) premium you paid gets eroded. Since you think the stock is
worth 140 max, this isn't likely. At a mimimum, you could convert
the Oct position to a bull spread by selling an Oct 135 after MSFT
moves up, so at least you've reduced your net premium. But if it
were me I'd simply take the profits ASAP. This market's ugly and
you're playing with fire...you've been lucky so far, why push it? |
