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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (17946)	5/5/1998 2:48:00 PM
From: Arik T.G.	Read Replies (1) \| Respond to of 94695

Chip, Excuse me for barging in. >> how best to hedge a portfolio of stocks... IMO- SELL THEM! >> reluctant to take the capital gains hits.... It's just psychological. You'll sell them sometime, won't you? After the tax cut of last year it's even better. >>only to find our stocks going up another 15% after the sale. Don't matter. You'll be able to buy back KO, MRK and GE at far lower prices then the current price. At that time you'll need the same strength of character to buy as you now need for selling. ATG

To: Chip McVickar who wrote (17946)	5/5/1998 10:16:00 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 94695

Chip, I would suggest to write calls on the stock you own and with the money from the call to buy puts, both transactions should be at least one month out. To be able to hold on to the stock, just buy calls on strike above the strike you sold. In case that the stock may be called away, you buy back the call option - register a loss, and sell the strike above and may register a small profit. Those losses can be of help if later the stock is "put" to some one else and you have a capital gain. This strategy can work for relative stable stocks. Definitly will not work for KTEL or YHOO or AOL. Be prepared to be "put" out the stock. INTC or CPQ is a perfect example. Aside there is nothing wrong to pay taxes on profits IMHO. I am not sure how teh IRS is considering a profitable washsale. We already know they do not recognise a loosing wash sale. BWDIK Haim