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To: taxman who wrote (118031)4/16/1999 8:51:00 AM
From: edamo  Respond to of 176387
 
taxman...<ot> <ot>

re:aol 01200...not concerned of what happens to put, in fact best case is if aol is +200 at expiration...share in appreciation, but using put income to subsidize purchase of common...makes it more bullish...increases risk slightly, for if put it would increase my cost basis due to long purchase. what i enjoy is the ability in essence to tap the capacity of my portfolio without borrowing on margin...works best in up market..but as i've said, its been an up market for +75 years....the tax implications are beneficial, for you can plan your losses and gains for your yearly situation...you must keep good records, for options activity not on 1099's

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