Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Ponderosa who wrote (5588)	2/29/2000 12:05:00 AM
From: Voltaire	Read Replies (2) \| Respond to of 35685

Hi Ponderosa, without getting too deep. This is one of my contentions. Now technically you can get called at anytime after writing the call. My experience has shown that rarely will you get called even if the stock say went to $170 because most option investors are not buying calls to exercise, they purchase calls to make money on the calls themselves and with the influx of momentum traders the Call Out is becoming even less of a worry than in the past. Yes, if the stock stays under $155 you would not be called. Taxes - Consult a Tax Expert - But you knew I was going to say that. V

To: Ponderosa who wrote (5588)	2/29/2000 6:45:00 AM
From: Jill	Respond to of 35685

Hi Ponderosa, I assumed cc are the same as puts: a small percentage get called before expiry if conditions are right...it doesn't happen often, but it can. April 155 seems risky to me--i.e. QCOM is on an upward trend now after a period of consolidation, 160 is apparently next resistance. If we get another downdraft back into the 130s (who knows) might be wiser to buy them back for a smaller profit and resell a higher strike. Put sales can't be taxed until transaction complete (being put the stock very different than pocket the premium) but perhaps cc are different--you always pocket the premium, but if your stock gets called you have "sold" it and pay cap gains on that too? I'm not an expert on cc tax stuff (or tax stuff in general--I'm trying to go entirely electronic this year, but haven't managed it yet. Did upload Quicken...)