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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: eabDad who wrote (34396)	10/22/1998 8:22:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 132070

eabd, i look forward to the day i pay my first million in taxes ;-)

To: eabDad who wrote (34396)	10/22/1998 8:26:00 PM
From: miklosh	Read Replies (2) \| Respond to of 132070

<sell January 20 calls.Everything becomes a 1999 event> I'm fairly new to options so let's see if I understand this. I sell deep in the money Jan 20 calls, reality sets in and amat drops below 20 and I get called out next year at 20 for a much smaller gain on my shares than if I sold today at 32+ and I pocket a commensurate large premium for the pricey calls which evens out my total profits but defers them to 1999. Is this correct? How is it that collecting the premiums now for the calls is a 99 tax event? Is it because it is only taxable upon option expiration, not on the day I receive the premium? Now for the really beginners question: If I write a deep in the money (1999) Jan call, what's to guarantee that I won't be called before the years end, or for that matter, the day after I write the call? TIA