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

To: Dr. Id who wrote (3784)	5/30/2002 12:46:03 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 5205

Of course what we do have down here is the wash sale rule that prevents you from recognizing any loss if you "replace" a position within 30 days before or after you close one. And then there is the $3000 per year net loss limitation that has left many of us with a backlog of unclaimed losses. I try to think of it as prepayment of the taxes owed on gains I am going to make some day. Hope springs eternal and all of that Dan

To: Dr. Id who wrote (3784)	5/30/2002 9:01:35 PM
From: Thomas Tam	Respond to of 5205

Thanks for all the responses. Now I guess the second part of the question is should someone sell and buy back if they think there is risk of a significant pullback, despite taxes? In the SEBL case from 24 to 18.5, that is a 22.92% decline (24-18.5)/24. Given the recent anemic volume will the absence of buyers lead to further declines. That's what precedes every decline a lack of buyers. The issue right now is that there are a lack of sellers also. So is the average "investor" more willing to buy or sell at present? Thomas