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Technology Stocks : Compaq

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To: S.C. Barnard who wrote (9708)11/26/1997 5:28:00 PM
From: Tom Aellis  Read Replies (2) of 97611
 
My view on insider selling
I work for a company that grants options
once a year. I've noticed that these options
come in handy when an emp. is buying a house,
christmas etc...However, most corporation that
offer options do in fact have expiration dates
assocated with them so they must be used prior.

Question: Quite a number of people that I know
flip their options not into a cashless transaction,
but flip into stock thus hold and taking the 20 pct
long term capital gain vs. a short term at their tax rate.
Example: Options granted: Oct 99 strike price: 15 usd.
In Sep 99, one could flip and turn into common
stock and hold forever, thus reaping the 20 pct long
term rate.

Most will flip half into cash to purchase the other half for
common stock.
IMHO
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