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Technology Stocks : America On-Line (AOL)

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To: Craig A who wrote (3079)1/21/1999 7:12:00 PM
From: Steve Robinett  Read Replies (2) of 41369
 
Craig,
You say, I feel, however, having no technical background, that maybe a stop limit may be in order here. Then commeth the tax man.

You could always buy cheaper out-of-the-money puts as a form of traumatic insurance. If the puts expire worthless, the premium you paid was the price of insurance. If AOL tanks during the life of the option and you make on the options what you lose on the stock, the insurance policy paid off without having to sell and incur a tax liability on the stock (though you'd still have one on the option). Just a thought.
Best,
--Steve
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