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 : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 154.74-0.8%Dec 1 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jonathan Edwards who wrote (3313)11/7/1997 2:18:00 AM
From: Ira Player  Read Replies (1) of 10921
 
Looks like I got some bad informtion on handling a called option (haven't had it happen myself).

However, (unless it got killed this year along with the short against the box play) it is still better to close the option at a ST loss to end that transaction. Then sell the stock (independent transaction) and save by offseting other gains with the ST loss rather than let it get called (if you have gains to offset).

For those who never used it, shorting against the box was a technique to avoid taking a profit on a stock with a low basis when you felt it was short term weak. If you sell the stock, fully taxed. However, shorting the stock and later covering it was considered a separate transaction and the tax was only due on the gain from the short/cover. The latest tax changes disallow this type of transaction as monitarily unjustifiable for other than tax avoidance (delay, da** it, delay!!!).

Ira
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