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

To: taxman who wrote (10265)	11/13/1999 12:00:00 PM
From: Dr. Id	Read Replies (1) \| Respond to of 54805

taxman (and any others who'd like to comment), This question may also relate to Mike Buckley's ideas of what to do when overweighted in a particular gorilla. I have become a bit nervous about the heights that our stocks are achieving, and am wanting to trim back some holdings and "rebalance" my portfolio. Particularly, I'd like to reduce some holdings in Kings that have done very well, also reduce holdings in my one Godzilla (AOL), while eliminating my margin loan and providing some cash for the next pullback (so I can add to my gorillas!). My question is this. If I want to protect myself while doing this and delay selling until the next tax year, what do you think about the strategy of buying January puts and selling January covered calls to pay for the puts?(say, selling calls one strike price above the puts). My sense is that it would protect my downside (while limiting my upside) but also allow me the probability of selling some of my stock in the next tax year. Any problems with this scenario? Thanks, Jeff