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

To: freeus who wrote (9177)	10/29/1999 6:13:00 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

CNBC just announced Citrix will be added to the S&P500. Shares are trading up $2 in aftermarket.

To: freeus who wrote (9177)	10/29/1999 7:14:00 PM
From: Seeker of Truth	Read Replies (2) \| Respond to of 54805

The strategy of selling puts of gorillas instead of buying them immediately at the market should have one caveat. It depends on your tax situation. If the investor is a taxpaying entity then ordinary income is recorded and the tax rate is maximal. On the other hand if you just buy and hold there is for the time being no tax whatsoever. I wonder how profitable the put selling strategy is for a tax paying entity compared to buy and hold? Does anybody have experience?