this will chase the stock higher.
WE did this all last year
next earnings; if you choose you can take some of this $11 and buy a near term call to play the earnings's action. But by then you may want to trade this either up or down.
the availability of free cash in itself has a value. What is the cost for short term loan..5%?
but as discussed you can keep moving the tax bill down the roads for years.
the Jan 2016 $75 calls sell for a 14.5% premium..
your' giveaway is $75 + $11 = $86...your hedge is $75 - $11 = $64
I said "deferred" not exempt.
You do not pay taxes until you close out the account.
Then if the stock runs, and you close these out for a paper loss to only to TRADE UP..you do not pay taxes for another year...
the Jan 2016 $75 calls sell at a 14.6% premium:
75.00 FB160115C00075000 10.85 10.60 11.05
Open interest is 15227
$11/$75 = 14.6%
the markets are fluid and so are comments and sentiment.
Anyone who reposts old ideas in an attempt to embarrass anyone....I have one question: "What did you do to help a neighbor?"
Come here with fresh ideas to help me not hurt.
Sale of puts is only when the market takes a stock down....