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

To: eabDad who wrote (34403)10/22/1998 9:35:00 PM
From: miklosh  Read Replies (2) | Respond to of 132070
 
Z, thank you.
Your explanations are a very valuable lesson for me. You have clarified several areas which were unclear to me.
Thanks again!
miklosh



To: eabDad who wrote (34403)10/22/1998 9:47:00 PM
From: Skeeter Bug  Read Replies (1) | Respond to of 132070
 
>>By selling deep in the money calls you will effectively be neutral the stock. I have
not quoted them, but my guess with AMAT at 32 and change, you could sell the
Jan 20's for 14+.<<

eabd, i wish ;-) my bet is that it is much closer to $12. maybe $12.50 or so.



To: eabDad who wrote (34403)10/22/1998 9:58:00 PM
From: yard_man  Read Replies (1) | Respond to of 132070
 
Good enough, but if the stock goes to 10 or 5 -- sure he gets to keep the premie, but he's got a pretty good paper loss to boot if he doesn't take any action in the interim. If he does take action -- buying back the call -- he has a taxable event.

Better to offset if he is thinking of selling something anyway. After all deferring the tax is just that, deferring the tax. Offsetting it means he never has to pay.


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