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Technology Stocks : Applied Magnetics Corp
APM 1.310-3.0%3:58 PM EST

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To: Frodo Baxter who wrote (12248)4/8/1999 9:10:00 PM
From: Spots  Read Replies (1) of 12298
 
After my previous post, I couldn't get the following scenario
out of my head, though I admit it's a little far-fetched:

Crisman gets options successfully priced below market (this
will take fast action<g>)

Crisman exercises options, thereby potentially accruing ordinary
income for diff between strike and market price.

Crisman sells options at a loss, thereby realizing cap loss on
diff between market price on day of exercise and sell price.

Result: Crisman is stuck for ordinary income on xxx million of
diff on day of exercise, and

Crisman gets to write off his cap loss at $3000 a whack over the next 500 years.

Now THAT's funny. Farfetched, but funny. Ok, my
imagination tends to run away with me, I admit it ...
(but it's still funny LOL).
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