SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: Guy Gordon who wrote (33798)1/14/2000 10:09:00 PM
From: Kirk ©  Respond to of 70976
 
re> Also, there's a way to avoid some of the taxes in a non-IRA account. Instead of selling the stock, you can sell deep in the money calls that you buy back at the bottom. Then you only pay taxes on the money made in the call transaction.

Thanks

I may have to learn these strategies as my position in this sector has gotten fairly large... 8)



To: Guy Gordon who wrote (33798)1/14/2000 10:57:00 PM
From: Ian@SI  Read Replies (1) | Respond to of 70976
 
Guy,

Isn't there a fairly high probability that the option will be illiquid; and that the option holder may just call away your shares in order to cash out his position? Then the whole amount becomes taxable at the option holder's discretion.

Or am I missing something?

Is there a European style call one can sell to maintain control over the dates?

Ian.