THIS IS ONLY A NON-PROFESSIONAL OPINION but i believe if you sell the intc in your ira and take a pre-mature distribution you could use use those proceeds to invest in intc in a non-ira account, if one desired. so long as you deposit the same amount you withdrew from the ira within 60 days, there is no negative tax consequence of the withdrawal.
REMEMBER-- if intc goes down and you've bought more of it than you had in the IRA, you might be in a spot to re-deposit the same amount as you withdrew. If that were the case, you would lose on the intc, you wouldpay a penalty for the pre-mature withdrawl, and probably never invest in anything again.
Just one opinion.
If you want to ride the wave and believe intc is going up, then keep the money in the ira, sell the stock and buy calls. Forget about the premature distribution rules. You can buy the jan 120's and pay only a 1 1/2 point premium over the actual stock price (i.e., you give up 1 1/2 points of upside potential should you hold until expiration). INQAD @ 17 or 137 on the stock versus 135 1/2 stock close.
However, you could buy up to 80 calls at 17 for the $135,000 invested in intc stock. I WOULD NOT LEVERAGE MY IRA IN THIS MANNER. But, you could buy, say 15 calls for every 1000 shares sold and thus increase your pside potential. THIS IS YOUR IRA. CONSERVATVE INVESTING-REMEMBER! For every call above 10 you buy for every 1000 shares of stock sold, you increas your upside BUT you also increase your downside. |
