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To: Moose who wrote (4105)	1/11/1999 12:52:00 AM
From: ria	Read Replies (1) \| Respond to of 29970

If you keep the leaps for more than a year then isn't the capital gains tax rate 20%?

To: Moose who wrote (4105)	1/11/1999 8:42:00 AM
From: E. Davies	Read Replies (1) \| Respond to of 29970

20 contracts is 2000 shares. Recalculate on that. Also, I'm not sure that letting an option be excercised is a taxable event. Eric

To: Moose who wrote (4105)	1/11/1999 9:35:00 AM
From: Moose	Respond to of 29970

For the record... Stock 10k buys me 100 shares. In 2001, I have 1600 shares worth $160k and no taxes to worry about. '01 Leaps 10k buys me 20 Jan100 ('01) contracts or the right to buy 200 shares. That 200 turns into 3200 worth $320k of which I need to spend $6.25/share on (split adjusted), or 20k. $320k - $20k = 300k profit with a tax burden. What is that anyway, about 40%? If so, I end up giving $120k to Billy and keep $160k. 10k actually buys me 2 contracts, or the right to buy 200 shares. I think I got the rest correct. End result is Leaps get me $160k after taxes, the stock gave me $160k before taxes. -Moose