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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: SSS who wrote (7837)	2/19/1998 12:47:00 PM
From: Bald Eagle	Read Replies (1) \| Respond to of 64865

<<1. how does the irs treat the income you get on your covered calls?>> As for tax, I really don't know or care, since I sell all calls in my IRA, I'm tax sheltered until I finally withdraw in many years time from now. However, my guess is that they tax it as income, since this would give the government most money. Anyone know for sure? <<2. what's the "base" symbol for sunw options, and where can one get quotes?>> Go to cboe.com Click on MARKET QUOTES Initially, it will show you the DJIA, just type in SUNW for the Stock or Index symbol and you will go to: cboe.pcquote.com Example of what I might do: Buy SUNW for 46 1/2 ( last quote I saw ). Sell MAR 47.5 calls, symbol SUQCW.O The bid is 1 1/2, ask is 1 3/4. I would probably ask for 1 5/8, usually that will work. If it goes through, I've got the stock for about 45, but I can't sell until after options expire in March or if the price of the option drops, you can buy back, close out your position and sell SUNW if you want to. If SUNW rises above 47 1/2, then I make 2 1/2 per share, not earth shattering, but 5-10% per month a few months in a row and you start to get a decent return on your investments. If SUNW goes down, at least I've cut my entry cost and can sell another call for APR.