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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: horseshoe who wrote (11587)	9/22/1999 10:19:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Putting the tax consequences on the side, shorting against the box locks in all the profit at the moment you execute it. Possibility #1 As one the stock price goes up, your short position will depreciate at the same exact value as your long position appreciates. Net result? Neutral! Possibility #2 As one the stock price goes down, your short position will appreciate at the same exact value as your long position depreciates. Net result? Neutral! Tax Consequences? You will have to pay taxes for 1999 tax year if executed before 2000. Your choice! Pay taxes or lose your money if the stock tanks! I rather pay taxes anyday! Paying taxes is a good problem to have in this country! Here are some more information about shorting in general. abcnews.go.com efmoody.com dtonline.com