Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: David Aegis who wrote (10322)	11/3/1997 9:56:00 PM
From: Jonathan Edwards	Respond to of 70976

The 60-40 rule and mark to market rules apply only to options that are not based on equities and options held by a dealer...

To: David Aegis who wrote (10322)	11/3/1997 10:05:00 PM
From: Tito L. Nisperos Jr.	Read Replies (2) \| Respond to of 70976

David, LEAPs are taxed depending upon the holding period, just like stocks or any other investment...Stocks plus margin appreciates more than LEAPs during the early rise, but later on the LEAPs, as they go Deep in the money, gain more as the underlying security advances 10, 20, 30 dollars and more; that is in LEAPs, one controls more shares than if he just have the stocks plus margin...In leaps, one doesn't pay interest for margin, and the most important of all is---no one is going to ask someone who suddenly becomes "paper-poor" for additional money in times of need. Leaps are liquidated and rolled-over at will; but are not as liquid as stocks...In LEAPs one has to have a schedule to follow:--- when to take some profit and when to roll-over so as not to be caught holding the soon to be empty bag...