Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I was watching Fast Money tonight and Karen Finerman said you could do the following interesting strategy to prevent a short term loss from becoming a long term loss (assuming you did not want to outright sell for some reason).

She said before the stock has been owned 365 days, you could buy an out of the money put, which ends the holding period. That gives you the short term loss at your marginal rate vs a long term that offsets 15% cap gains.

I trust this to be true as she has proven herself to be an astute investor, intelligent person and experienced hedge fund manager.

Any comments?
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.