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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: LastShadow who wrote (10395)	6/19/1998 10:32:00 AM
From: Jenna	Read Replies (1) \| Respond to of 120523

In CCL July 35's this morning and ELNK. Will consider holding CCL options over the weekend

To: LastShadow who wrote (10395)	6/19/1998 11:30:00 AM
From: John J H Kim	Respond to of 120523

<<Another is to reenter for the rebound and declare it as a wash sale>> I guess this means that one would simply "sacrifice" the tax loss to hopefully chase a bigger profi. If one was convinced that the stock would run much higher. One recent example: I bought into THNK few weeks back when it suddenly declined from high twenties to the low twenties. At this point, I decided that bottom was put in, I entered at 23. Next day it declined further to 17's I stopped myself out at 19. Then I realized that I goofed here, and decided to re-enter at 20 on it's run to 27. So I "sacrificed" my 4 point tax loss to get a 7 point gain. (or did I only sacrifice 3 point since I re-entered at a higher price than my exit?) So as it stands, I'm liable for the 7 point, but will not get the break for the 4 points. (let's say, at 30% tax rate=$2,100, $7,000-$2,100 = $4,900 profit) So if let's say I did wait 30 days and got the same result (though one would never know if it is likely or not), I would be liable for only 3 point gain. ($7,000 - $900 = $6,100 profit) Had I not taken any action on THNK then I would just keep the 4 point tax loss, and not had the 7 point gain (then I just keep $1,200 for use at the end of the year. Did I use good logic here? Am I making the right assumptions?