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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (37675)	11/13/2000 8:02:15 AM
From: Techplayer	Respond to of 64865

rudedog, Thank you for your comments. Your last scenario fits well with my outlook. I appreciate your time and knowledge. tp

To: rudedog who wrote (37675)	11/13/2000 10:02:00 AM
From: chic_hearne	Read Replies (3) \| Respond to of 64865

But in any event, buying the puts insures you against the drop in the stock price, so you are at least preserving a profit without selling the stock. Rudedog, One thing to consider is your tax obligations. If you've held the equity for over 1 year, there's no impact. But if you've owned the equity for under 1 year the "married put" resets your time horizon. For example, if you purchased SUNW 6 months ago and today you bought puts on that position, for long term tax purposes it's looked at as you bought the stock today (actually, I think it's the day the put expires). If you then sold SUNW in 8 months it would be viewed as a short term gain even though you held the equity for over 1 year. chic PS- I see Joy Bag-a-donuts on CNBS calling his 10th bottom in the last month. LOL!!