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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: virgil vancleave who wrote (11877)	11/22/1999 8:16:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Well, Virgil! They say hindsight is 20/20! I'm in that situation with IFMX right now! I tend to lean towards buying the sideshow long calls on runaways. If I get called out in Feb. it will be a long term capital gains event. If you want to remain long in the stock, then perhaps covering at a loss and rolling up and out a few months may be the way to go. It is also helpful to consider the time of the year and long term capital gains impact. If say, in November 1999 you cover the CC at a loss (tax wise) and then keep CCing that same stock until 2000 and then dump the stock in 2000 for a long terms capital gain event, that would be another consideration worth the wait.