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To: Don Westermeyer who wrote (1040)12/18/1997 3:10:00 PM
From: Oeconomicus  Respond to of 164684
 
Don, short term gain. One problem with call writing or put buying to hedge a long position is that, if the stock gain is long term, you risk turning that long term gain into a short term gain if the stock falls. You may come out relatively even pretax, but behind after tax. The 20% tax bill becomes as much as 39.6%.

Bob