I've been in and out of this stock since it was
an infant - have over 1000 shares and this run up
has been nice but a bit scary. Spider, CT and others,
what is the upside at this time, I mean a 65 point
run-up in a month or so usually equates to considerable
profit taking. Are you guys selling in anticipation of a
sell off? How are you protecting this considerable
profit at this time?
Keep up the posts as I have
been a solid reader of this board. THanks
... right now. Many small investors do not want
to sell yhoo if they have been holding for a few
months or more. The tax consequences are too large. They
will hold until January at least to avoid the tax
burden. Then the January affect hits and they continue to
hold creating an demand over supply situation causing
an escalation in the price. This is what happened to
AOL last year.
So my guess is for the next
few weeks, big moving stocks like YHOO, RHAT, AOL,
even INKT will continue to do well while stocks that
have struggled may get hit hard as investors try to
get losses accumulated before the end of the year.
about CGMI noon time post.
you probably have ST gains 1999, & 2. want to keep
the stock, 3..considering whether to take the
writeoff this year,
4. no question what I'd do.
Rolled 20 Merck covereds up & out for almost 2 years
quarterly before taking a 'gain'. That would have been a
painful huge cap gain tax takeout for us if called
prematurely. Somewhat akin to CT's 20 covered INKT sells @
various strikes & timing.
INKT isn't ready to
retrench. No covereds...yet again. Just a beautiful long
awaited 'nice ride'.
Party time at the Cave.
We're working on this location.
You are correct. That is a decision that I am
facing with my CMGI's . I bought the stock at 76 1/2. I
sold the Jan 110 calls for 11. Those calls are now
going to cost me roughly 84 to cover that is a loss of
$7300 per contract when I buy it back. The problem is
do I want to cover before the new year and write
that loss off against 1999 income or do I want to wait
until Jan to buy back so I can offset the gain I will
have from both the new calls I sell and the shares(if
I end up selling then in 2000). I am not sure yet
what I should do!
I didn't realize that when I "rolled" from the
Dec 140's to the April 180's that the loss of buying
back that option counted toward this year and that the
gain of income from the April 180's applies to next
year's taxes. I just bought back the Dec 160's for 18
1/2 when the stock was at 173-4 and will wait to roll
into Jan, hopefully getting a bounce that will help
No place you could borrow the money? Remember you
only need the money in there for one day. Long enough
to buy back then resell at a new strike price. I
agree with ctowles, there should be some level of
retracement on these high valuation stocks and you could make
a lot more if you keep on selling those calls.
Plus, if your shares get called and you have owned them
for less than 6 months you will have to pay ST cap
gains tax on them. Not a desireable thing. But if you
can't get the loot then unfortunately you have no
choice but to let them go.
You do have the right amount of underlying shares
for each calls sold right? Then why would you be
called to deliver those before expiration day? Am I
missing something? Also elaborate further on your tax
problem. I am not quite sure I understand. Are you saying
that you made so much on investing that the taxes due
will be more than your salary? If so then you must
liquidate some positions to pay?
I think we still have some upside left, may be
sell some part of u r position if u want to lock-in
Me in 3 days back after split
anouncement at 141
We are not in over-brought zone yet
Enjoy the ride.