Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: RoseCampion who wrote (45855)	10/23/1999 6:13:00 AM
From: JGoren	Read Replies (1) \| Respond to of 152472

Hold your Leaps. Here's another way to look at your choices. Sometime close to the expiration date, you can decide for each stock how much you want to exercise and thus how much you want to sell the options. You will have taxable gain on the options you sell, but take the net after taxes to pay for the number of shares you want to buy. Accordingly, you will minimize or eliminate having more margin. Since you mention Jan 2002, you might want to sell some after the long term capital gains period kicks in or in December before 2002 expiration and more in January, spreading your taxes into two separate years. That tax strategy is of course dependent on your own financial situation. Just a few things for you to check out and think about.

To: RoseCampion who wrote (45855)	10/23/1999 10:29:00 AM
From: Jill	Read Replies (2) \| Respond to of 152472

Rose/Jean: options: Jean: I think you're making this harder for yourself than it needs to be. Most options holders treat their options as entities onto themselves, to be bought and then sold later, hopefully for a profit. Very, very few are exercised for actual shares (except by exchange specialists/arbitraguers, but that's another story entirely). I disagree. I know of many veterans who exercise half the calls/leaps and take the profit of the others--and when the runup has been good enough, they actually get hundreds of shares for next to nothing, or even "free." It's commonly done. Jill