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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Tam who wrote (3781)	5/30/2002 2:51:27 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 5205

Thomas, Is it worthwhile to cover since it will probably expire worthless? I made that mistake once before when the stock rose about 40% in a two-week period. I agree that it will probably expire worthless. But since I'm dealing in a taxable account that will trigger a sizable tax consequence (less sizable with each passing day :) if the stock gets called, I'm much better off taking my profits rather than hoping on "probably." Of course, if it ramps up a bit you can sell again. Exactly. I can't do that if I haven't bought back the calls. --Mike Buckley