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

To: eabDad who wrote (34465)10/24/1998 2:43:00 PM
From: Knighty Tin  Respond to of 132070
 
Z. Deep in the money calls to defer taxes is not a horrible idea. There are only three factors to watch out for: 1. Will you get called away early and miss your deferral. It doesn't happen often, but it does happen. And you can still get your deferral by buying new stock to deliver against the exercise. 2. Could the stock decline by more than the premium? 3. Can your returns stand that dead money? And, the fourth of the three <G> Will they raise the taxes in your deferred year?

MB



To: eabDad who wrote (34465)10/24/1998 5:56:00 PM
From: yard_man  Respond to of 132070
 
I did it once. Allowed the stock to get called away at the first of this year and then the stock proceeded to rally big time. Sometimes, I'm just lucky. <g>


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