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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: plow guy who wrote (134)	12/27/1999 12:47:00 PM
From: RoseCampion	Read Replies (1) \| Respond to of 8096

...if I do B do I get to use the IRS's 10k for an additional 12 months? Yes. But that's not all. If you are facing large unrealized 1999 STCG, taking them now (by rolling) will mean that you also will likely face higher quarterly estimated tax payments throughout all of 2000 (paying toward your April 2001 tax bill, based on your now-higher April 2000 tax bill). So the actual deferral savings might be $15K+, not just the immediate $10K in taxes. If you believe that you can invest this additional capital at just 25% for the next year - well, you can do the math and see if you come out ahead. If you're worried about your Jan00 410s, you could sell some Jan00 calls against them - limiting your upside but cushioning your potential losses. This would effectively make your long calls into a bull (vertical debit) spread - think of it much like selling a covered call on common shares. As an example, today you could sell the Jan00 510s for about $30 each - meaning you'd come out ahead of the long calls alone if Q stayed below $540, and you wouldn't have a net loss from today unless Q dropped below about 430 or so. With the split and end of year, it's all a roll of the dice - playing the percentages is the smart way to go, IMHO. -Rose-