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Politics : Ask Michael Burke

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To: jim kelley who wrote (41537)12/30/1998 5:32:00 PM
From: Knighty Tin  Read Replies (1) of 132070
 
Jim, that may be the official scamarama, but it is a crock. The simple fact is, you have to mark options positions to market if you are a corp and they show up as capital gains. They do not get to buy stock cheaper by selling puts unless the bowwow goes down. It has not done that lately. BTW, when they buy the stock in the open market to fulfill the options scam, a totally different bit of blue smoke and mirrors, they also get a nice tax writeoff, even though they haven't lost anything. Dell does sell boxes and makes some money off of it. But buying back stock with debt, shorting puts and paying suckers with options definitely puts the bottom line on steroids.

MB
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