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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Rich1 who wrote (28947)	9/23/1999 10:25:00 AM
From: Logain Ablar	Read Replies (1) \| Respond to of 50167

Rich: Ike gets to avoid the US tax hit. Tim

To: Rich1 who wrote (28947)	9/23/1999 1:19:00 PM
From: IQBAL LATIF	Respond to of 50167

On the way up the MSFT position was held far below 96 by the person who wanted to sell and I wrote this simple strategy, for him the question was to sell or not to for me if someone is holding the stock and is worried about a steep correction better to sell covered calls use the money to buy the puts and than cover the puts at the lows making the profit to be used to buy more calls at lows, this is better than an outright sale which anyway would have raised a tax bill..I always like to keep my stocks running but use options to optimise my psoition , on levels like htis we have two possibilities to go up or go down now if we have some protection on the downside that offers us a good chance to play the correction otherwise with plain holdings you just watch the market here you are able to put your core in the work and moreover you are with the stock 20% higher at 113.. now that would translate a huge move on SPZ, even if we are at 113 on MSFT may be a correction their will enable you to reenter at lows but anyway the reason i always encourage to use options to minimise correction pain is it is not easy for investors to sell and pay a huge capital gains, it is easy to write that I am in cash for US investors as Tim has highlighted the issue is once you are out you need atleast a 40% hair cut to get back in, this marketr reverses at 1300's or may be 1230 so thw play is very limited..Please let me know if you need more info. as for the question you will find the MSFT original post soemwhere in recent posts..