Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Dawgfool who wrote (16066)	11/25/1998 2:03:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 25814

(Here's how to play the option stock game. Sell the stock, get the loss buy a short term call to protect you against a big run-up. If there is no run-up. Rebuy stock after 30 days. Sell the call- will also be at a loss. You now have losses to take on both stock and option and a lower basis in stock. As long as tax savings from stock loss exceeds after tax loss of option you win. If stock runs way up. You may not be able to take loss on original sale, but that should be OK cause you did make lots of money on call. ..) My understanding is that buying call options within 30 days is also a wash sale violation, but there is nothing certain about taxes, no matter what they say. -g- It should be noted that disallowed wash sale losses are not lost, but merely delayed, so it is usually a tax bracket and timing issue. Selling of puts should avoid the wash sale. Regards, Don