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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: William who wrote (3291)	6/30/1999 9:19:00 AM
From: edamo	Respond to of 54805

william...thanks the caveat....anything can happen in theory, but the chance of the underlying being called prior to expiration is minimal, as there is more value in trading the derivitive then the common.not even murphy would exercise until the common price exceeds strike plus premium (his cousin peter principle may however do anything).... and if called the only risk is not knowing the exact year of tax liability...still have accessed tax free cash,put it to work immediately in a new issue and have sold the stock at a price perhaps much higher then the current market...the comment was made to leverage locked in capital in an issue that is being held due to tax concerns...only way i know to do it is margin(bad idea)or sell future contracts(better idea)...murphy still alive?