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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (4775)	2/26/2002 11:41:30 AM
From: Kirk ©	Read Replies (2) \| Respond to of 5867

Sad story but he gambled on his options to save LTCG taxes and lost. When I left HWP, I exercised all my stock options and sold the shares on the spot to avoid the AMT hit should the stock tank. I didn't complain to the Government when the stock doubled again and ask them for relief. What people seem to forget is when someone has a basis of $1 for a stock and they exercise the option at say $21, then they have an income event to report of $20. The government is actually kind enough to let you gamble for a year and then take it as a long term capital gain...at a lower tax rate but the price you pay is you still owe tax on the gains should the stock go down. Those of us that are not gamblers sell enough of the shares to have money to pay the tax... or more. I actually just take the income as regular income and pay the tax... The volatility on tech stocks is far, far more than the 15% or so POTENTIAL tax savings... so I have always exercised and sold the same day when I had options to use. I think the AMT levels need to be raised but this rule... the only change I might make is to require all options to be considered as income and take away the option to turn it into LTCG from the original basis...