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Author: fh2000 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121565  
Subject: Did I do the right thing by rolling up/out NOVL Date: 12/27/1999 6:27 PM
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I sold 7 contracts of Year 2000 NOVL April 27 1/2 option @2 1/2 last month, only to see Novell's price went up to $34 last Thursday.

With my already realized $45,000 capital gain, I decided to reduce my capital gain by rolling up/out NOVL covered calls: I bought back the calls @9 3/4, and sold year 2001 Jan 30 option @10 3/4, with one dollar credit.

I think I have created a capital loss of this trade for 1999 with about $5000. And effectively rolled my options out to Year 2001.

Does anyone have any opinions about this trade? My only purpose for this trade was to reduce the capital gain for 1999.

Thanks
Frank
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