Eddie -
you could have sold at $38 less than a month ago?
What happened in the past is past. Also - I was not talking about selling at a loss. I was intending to sell only the shares I bought in June at the same price I bought at, and pick up a point or 2 if the current volatility continues, which would further reduce my basis. This would be one of the few opportunities for me to do a tax-neutral transaction. The 24000 shares at 27.5 represents about 12% of my CPQ holdings, the rest was purchased at split-adjusted prices like 2, 3, 7, 9 which I obviously don't want to sell, for tax reasons.
There are other methods that I could use to do the same thing - like the short against the box that LoD did on Dell - which could leverage a larger number of shares to pick up some $$ on a dip, but those would have tax consequences this year. But the plan I proposed would have simply lowered my basis on this CPQ purchase with no tax impact at all. If I had done this yesterday I would be up $50K today, with no tax impact until I decide to sell - just turns that particular investment into a better deal.
I think the point of all this is to make money and have a good time doing it. There are not too many opportunities to pick up $50K in a day with no tax consequences. |
