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To: t2 who wrote (30379)10/4/1999 10:26:00 AM
From: PMS Witch  Respond to of 74651
 
Off topic: Option stuff ...

Interesting ...

Before putting option trading on the shelf for keeps a couple of years ago, I only sold naked puts on stocks I'd be willing to buy at the strike price. I'd pocket the premium. In most cases, I'd have been better off buying the stock and holding it, but doing this would've triggered unpleasant tax consequences which would offset any advantage.

My previous post was an attempt to present the simplest option trading fundamentals. I didn't want to touch on the common practice of combining option plays into more complex overall positions. I'm sure that those who do this have a complete understanding of how the various pieces of the puzzle fit together and, therefor, have no need to review my posts.

Again, I'd like to emphasize that my goal is to maximize my AFTER TAX return. Canadians, with their higher tax levels, are well advised to consider taxes when making investment decisions. Options can assist us in achieving our goals.

Cheers, PW.

P.S. It's been a couple of years since I've traded ANY options, either for myself, family, or clients. I'm trying to wind down my investment activity (without much progress) and take life easier.