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


To: garyx who wrote (3041)2/16/2000 11:50:00 AM
From: garyx  Respond to of 8096
 
LEAPing into taxes?

Question -- I am thinking of substituting my Q, which I so deftly bought at 199 on Jan 3 2000 -- for leaps. My Q is, LTBH is supposed to work so well because you get to compound your money, its not stolen by the govt every year...

With LEAPS, aren't you paying taxes on your profits? Or is it better to exercise them, and actually buy the stock? Has anyone looked at comparing the leverage on LEAPS vs the negative effects of taxes? Can someone help me out here, I am so new at all this!

G



To: garyx who wrote (3041)2/16/2000 11:54:00 AM
From: Poet  Read Replies (2) | Respond to of 8096
 
Hi gary,

Cyber-affection almost feels as good as the real thing, no? <g>

Sorry about the transposition on HGSI. I just figured out a buy-write on it, then read your post on CRA. I'd much rather own the pick-and-shovel seller, so it's back to the options chain for me. I see CRA hit an all-time high today too. Thanks so much for the information.