Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: Chip McVickar who wrote (17946)	5/5/1998 10:16:00 PM
From: Haim R. Branisteanu	Read Replies (1) of 94695

Chip, I would suggest to write calls on the stock you own and with the money from the call to buy puts, both transactions should be at least one month out. To be able to hold on to the stock, just buy calls on strike above the strike you sold. In case that the stock may be called away, you buy back the call option - register a loss, and sell the strike above and may register a small profit. Those losses can be of help if later the stock is "put" to some one else and you have a capital gain. This strategy can work for relative stable stocks. Definitly will not work for KTEL or YHOO or AOL. Be prepared to be "put" out the stock. INTC or CPQ is a perfect example. Aside there is nothing wrong to pay taxes on profits IMHO. I am not sure how teh IRS is considering a profitable washsale. We already know they do not recognise a loosing wash sale. BWDIK Haim

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