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To: chic_hearne who wrote (37677)	11/13/2000 10:10:28 AM
From: JDN	Read Replies (1) \| Respond to of 64865

Dear Chic: That is known as a "Pregnant Put". Hope the Goreites are enjoying their substantial capital losses. I just wish I had been smart enough to realize that in a close election the cheaters can play havoc and had foreseen this development. Alas, I have to sit back and watch my years of work go to hell in a hand basket, just hope we have a relief rally whomever wins so I can continue to invest if its Bush or exit the market if its Gore. I will not ride out this market with him in office. JDN

To: chic_hearne who wrote (37677)	11/13/2000 10:12:16 AM
From: rudedog	Respond to of 64865

chic - the analysis I presented assumes you do not want to sell the underlying, which makes your point moot. But my tax guy does not believe that the option buy alters the basis date of the underlying equity buy. I suppose different advisors have different opinions, and I have never sold the underlying on a put buy so I never put it to the test...

To: chic_hearne who wrote (37677)	11/13/2000 9:22:17 PM
From: Logos	Read Replies (1) \| Respond to of 64865

>>[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.]<< Can you please explain the tax implications of buying a stock and selling a call on it the same day? For sake of argument, say the call has a two year time horizon. Is it counted as long term or short term capital gain, if the call is exercised or if it is not exercised. Thanks much. Logos