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Financial Planning / Tax Strategies
URL: http://boards.fool.com/yep-you-are-understanding-what-im-doing-i-am-28667854.aspx
Subject: Re: Put income and capital gains	Date: 7/30/2010 11:19 AM
Author: caburke37	Number: 110766 of 118626
Yep, you are understanding what Im doing. I am glad you do not see a serious tax penalty with this type of trading. I think the reason I did not ask about the issue of getting put shares of a company that just went into the toilet was that I had considered it and decided I was going to accept the risk. This is by no means because I think I can time or outsmart the market or investors who actually know what they are doing, but because I presently have a good income but that will change soon. Due to my age I dont have 40 years of compounding to prepare for my retirement. I have to catch up. I have to take some risk. The BP fiasco is a perfect example of what you are talking about. I think the only thing I can do to lower my risk while using puts and calls this way is to continue to invest in solid companies and in several different companies at a time, instead of only one or two. Thanks for your input.
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