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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: Casaubon who wrote (12159)	1/5/2000 11:43:00 PM
From: taxman	Respond to of 14162

tax benefit is to defer the tax by exercising calls which are profitable. i am fully invested. i prefer a call rather than stock because of the leverage. i can hold a leap till expiration with limited risk and unlimited upside. a stop loss order on a stock can stop you out just prior to a big run. further a stop does not protect one where stock gaps down. bmcs gapped down 20 points for example. i did buy bmcs options last week so my loss is limited and i still have until 2002 for it to come back. if i owned the stock, i could risk a large loss. i don't short stocks because, among other things, brokers do not pay individual investors interest on the proceeds from short sales. regards