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Technology Stocks : INTEL TRADER
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To: smolejv@gmx.net who wrote (4458)10/22/1998 5:18:00 PM
From: Jurgen Trautmann  Read Replies (1) of 11051
 
Did you try this covered short-call game?

When you would like to sell a long-call position - but you're still in the speculation-period - you can sell "covered" f.e. the next "cheaper" call.

You can calculate the 3 possibilities (underlying up/down/indifferent) by yourself: it's a no-risk-play. And it's not on your buying-power because it's covered - better, you get free cash instantly.

But the interesting effect is, that - if the underlying goes up - you can sell your long position tax-neutral outside of the speculation-period, but you cover your short-position with tax-effective loss inside the speculation-period. This "spends" you a cost-free loss for tax purposes that can be deducted from eventually other speculation-gains.

Jury
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