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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Wilhelm who wrote (32622)	9/29/2000 11:30:43 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Mike, Please help me understand your comments to GGamer. You explained that 17.6% of the market value of the LEAPS would be "given away" upon exercising the contract. That was compared with the tax-based "give away" of only 15% of the value if it is sold instead of exercised. Isn't it correct to look at the give-away upon exercising as a pre-tax give-away? And if I'm right, using your 25% marginal tax rate, 17.6% pre-tax is less of a give-away than a 15% after-tax give away. --Mike Buckley