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

To: PAL who wrote (7647)	5/6/2000 2:18:00 PM
From: Seldom_Blue	Read Replies (3) \| Respond to of 8096

PAL, Two excellent posts in a row. Thanks. One question: You mentioned that ALL short option gains are considered ordinary income. If I sell a LEAP call or put, close it in 1 1/2 years (not assigned or expired), then I still get taxed at short term/ordinary income rate? I had sold some LEAP puts with the intention that if they become profitable, I will close them to get the L/T tax treatment. I will now check with my tax advisers on this. I have used the three legged method you have described with some success. Of course, from last Oct. to this March, I have gotten away from writing calls because of the unabashed bull market. This strategy may be good for the yo-yo market we are now in. Except when I did it, I always sell the calls about 20% more than my stock buy price, and sell the puts 20% below. I feel safer that way, and can still participate if the market rises. Seldom Blue

To: PAL who wrote (7647)	5/6/2000 2:35:00 PM
From: Jill	Respond to of 8096

Good post, PAL. We can always use this kind of info from you. Jill

To: PAL who wrote (7647)	5/6/2000 2:38:00 PM
From: Tom K.	Respond to of 8096

Clear response, PAL. Thanks much. Tom

To: PAL who wrote (7647)	5/7/2000 2:20:00 AM
From: cthruu	Respond to of 8096

I was lurking again after a long time and saw your post. Try MO. Stock is at 23 1/2, you can collar it for total cost of around $10 ( sell $25 calls and puts). Additionally there is a dividend of $1.92 per share which reduces your cost basis to 11 5/8. You will sell calls now and sell puts on a little pullback to 20 or so - do not place both at the same time. % return is much higher - over 200% if the stock is called out. Regards: GP

To: PAL who wrote (7647)	5/8/2000 3:24:00 AM
From: PAL	Read Replies (1) \| Respond to of 8096

I have repeatedly maintain that the thread has deteriorated due to Jill insistence of maintaining control. She still insists on giving each and every post a reply as if her approval is required ... This is despite the fact that her knowledge of option has not passed the introduction chapter and has led to her own financial problem which is well documented by her. My objection has been her double standard in the so-called her right to maintain civility. She encouraged and even participated in juvenile throwing mud by her sidekick LONGonFIBER but objected to some strong words from a very respectable and seasoned investor edamo due to her personal vendetta against him despite her denials. The diabolic behavior of LONGonFIBER, with his fabricrated quotes and creating non existent pm from me, is typical that of a boy who was bullied during school years, only grow up as a coward who draws pleasure of throwing dirt to others only because he can hide behind cyberspace. Unfortunately Jill likes and joins the diabelries by endorsing that cowardly acts which degrade the thread immensely while contributing nothing to the intended subject. SI has a great feature of ceasing communications with certain individuals. Since I have zero respect of both Jill and LONGonFIBER as human beings as well as their shallow knowledge of option, I am invoking the complete ignore feature, such that any posting to and from them is bypassed. Many good contributors seem to have left the thread which unfortunately will be even more dominated by Jill and her sidekick LONGonFIBER. Tragically, Jill's method of option investing has taken her to her own financial loss causing her to seek help from ed and Voltaire. It is up to the newbies if they want to follow her recipe. Since I prefer not to be associated with the direction of the thread as managed by Jill, I am not going to post nor will I browse here anymore. To those newbies and objective contributors, good luck ... but I have the feeling they will be heading the exit as well. Paul