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To: jim_p who wrote (82688)	12/26/2000 2:15:42 PM
From: upanddown	Respond to of 95453

I hate to pay taxes also, but I learned a long time ago to not take taxes into consideration when trading stocks. You're right and if it was June, I wouldn't hesitate but after Christmas when you just have to wait a couple of days, it seems like it should be a consideration. I'll be the first to admit I never KNOW when to sell. Like everyone else, I'am just guessing at where the tops are. I'am probably wrong more than I am right. During this OS run since spring of 99, the best decision frequently has been hold rather than sell. John

To: jim_p who wrote (82688)	12/26/2000 4:18:38 PM
From: abridge2far	Respond to of 95453

There is another way to protect gains while deferring taxes. Like many others, I have substantial capital gains in 2000 and am reluctant to incur more gains in this tax year. I agree that generally, letting tax implications be a factor in trading decisions is a mistake. However, in order to protect gains that I have now and avoid tax consequences for the 2000 tax year, I have begun buying puts on E&Ps that I do not own to act as a hedge against the gains I have tied up in the ones I do own. I don't buy puts on the stocks that I own because of the tax implications, ie., the clock stops running for purposes of LT capital gains, and the purchase of puts on a security which you own long can be treated as a sale of your long position unless you follow the guidelines set forth by the IRS. For big moves at least, the E&Ps seem to move together and so I feel I have a degree of protection this way if they all trend down. I will be very happy to lose the premiums I pay for the puts if my E&Ps stay where they are or go higher. In case anyone cares, my largest positions are currently XTO, CHK, TMR, OEI, OXY, TGC, FLC, KEG, CPE. What a day!