Looking for opinions on whether members routinely sell their losers before the losses become long term.I have intel where it is approaching the date of going Long term. It's a conundrum whether to sell a "buy first" recommendation. I could use the losses to offset option gains. I currently have a full allocation and currently 50% is approaching the date. I am thinking of selling and then I would be able to write a strangle on the 50% I retain after 31 days.So two questions:1. Is it Foolish to harvest short teRm losses when they occur.2. Does it make sense to sell intel now while it is a buy first?Foolish regards,JohnWho knows by selling intel will serve as a catalyst for it to go up.
I generally generate short-term tax losses if:1)I can make use of the losses to offset gains; 2) if the stock price is not particularly volatile (suggesting that it may not dramatically increase before I'm allowed to buy it back 30 days later); or3) if the stock is in the middle or upper part of its recent trading range (suggesting that it might fall even more than it has already fallen)
Thanks for the reply. I think the answer for intel is yes for the first two and no for the last.Still thinkingJohn
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