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

To: Bridge Player who wrote (5434)	3/22/2000 10:18:00 PM
From: Jill	Respond to of 8096

He probably kept losing his stock, and forced to pay cap gains taxes (maybe short term), while the stock went up in value. So if he'd not written cc he could've held onto rising stock and paid no taxes. Of course, I'm sure he'll answer for himself! <g>

To: Bridge Player who wrote (5434)	3/22/2000 11:58:00 PM
From: steve mamus	Read Replies (1) \| Respond to of 8096

They are not contradictory. My pattern was selling calls on stocks that were sky rocketing in certain unfortunate circumstances. This occurred when I was first doing options and inevitably I would panic because I would lose the common. As taxman pointed out previously covered calls usually not a great idea. However, I have more recently used these effectively in my IRA account. Despite the above comments, I did recently make a bunch on a very large covered call transaction in QCOM. My general problem was underestimating the explosive upside in a number of stocks that I choose. On the flip side, I did well with sold puts for the same reason, the stocks sky rocketed. Its a bit more complicated then this but this gives the general drift. DoK