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Casual Articles - Tax Deferral Strategies - Sell A Call Option
Are You From the Old School of Bankruptcy?
If you are a product of the 70’s or earlier, chances are high that you don’t believe in filing for bankruptcy, regardless the financial situation you are in. A friend of mine who started his own business a few years ago is now struggling to keep afloat as debts pile up around him. Despite the advise of friends and family, he refuses to file for bankruptcy, stating he is too proud and wants to avoid the humiliation he feels he would experienced if he declares bankruptcy.I can understand. We are both the same age, in our late 50’s and a product of the 1950’s. We both grew up poor and enjoyed financial success after graduating from college. While growing up in rural areas, we were both taught that a real man never gives up and never declares bankruptcy, for to declar
stock above $60.00If you are a product of the 70’s or earlier, chances are high that you don’t believe in filing for bankruptcy, regardless the financial situation you are in. A friend of mine who started his own business a few years ago is now struggling to keep afloat as debts pile up around him. Despite the advise of friends and family, he refuses to file for bankruptcy, stating he is too proud and wants to avoid the humiliation he feels he would experienced if he declares bankruptcy.I can understand. We are both the same age, in our late 50’s and a product of the 1950’s. We both grew up poor and enjoyed financial success after graduating from college. While growing up in rural areas, we were both taught that a real man never gives up and never declares bankruptcy, for to declar
forcing you to sell the stock to them. You then sell your stock
at $60.00 plus the $23.00 you received from the sale of the
option.
Because this happens at January expiration, which is after the
one year time line, you now only have to pay long term capital
gains tax - instead of the muc
Screening Your Employees
Many companies screen the employees before recruiting them. This helps them weed out undesirable candidates at the outset. It also protects them from litigation, regulators and the risk of high turnover. Besides verifying the details on your resume, employers most commonly screen for criminal behavior, drug abuse, regulatory violations, and appearances on a terrorist watch list. They also keep a check on employees’ tax liens, bankruptcy filings, ongoing divorce or custody proceedings, driving violations or bounced checks. Employers are also concerned that someone with monetary problems, health issues or family concerns may not be fully focused on the job. During the screening process, companies gauge a candidate’s temper, social skills, and reaction to stress, attitudes and
To capitalize on this strategy, your call must meet certainMany companies screen the employees before recruiting them. This helps them weed out undesirable candidates at the outset. It also protects them from litigation, regulators and the risk of high turnover. Besides verifying the details on your resume, employers most commonly screen for criminal behavior, drug abuse, regulatory violations, and appearances on a terrorist watch list. They also keep a check on employees’ tax liens, bankruptcy filings, ongoing divorce or custody proceedings, driving violations or bounced checks. Employers are also concerned that someone with monetary problems, health issues or family concerns may not be fully focused on the job. During the screening process, companies gauge a candidate’s temper, social skills, and reaction to stress, attitudes and
criteria. First, the time to expiration should be just beyond
the stock’s one year ownership time period. You need to get
beyond the one year period but not too much beyond so you are
not tied into the position longer than you have to be.
Remember, you are engaging in this strategy because you want to
sell the stock and close the position, so you want to stay away
from doing anything that would keep you in the position longer
than absolutely necessary.
Second, you would want to make sure the option is deep enough
in-the-money, in two respects. First, the option must have a
high delta, at least in the 90’s, and second - the strike price
must be lower than what you perceive is the lowest price the
stock could reasonably go between now and the option’s
expiration.
So, you decide to sell the January 2004, 60 strike calls for
$23.00. By doing this, you have ensured yourself of being able
to sell the stock at $60.00 and you have received $23.00 to do
so.
In effect, you have sold your stock at $83.00 without selling
your stock, as long as the stock stays above $60.00 by the
expiration. This is because the buyer of the option will
naturally exercise your short call with the stock above $60.00
forcing you to sell the stock to them. You then sell your stock
at $60.00 plus the $23.00 you received from the sale of the
option.
Because this happens at January expiration, which is after the
one year time line, you now only have to pay long term capital
gains tax - instead of the much
How to Multiply Business Sales by Up to 9 Times in Just One Week--Define the Customer Value
Do you know how much a customer is worth to you? If you don’t you should. It results in one of the biggest breakthroughs my clients have.Once you know what an average customer is worth, one of the first things you’ll notice is that there is likely more than one type of customer coming to you.We reviewed the average value of a customer for one of my clients, discovered that there were at least 3 different types of customers, each buying a significantly different average amount, some were buying only one time, and others were becoming repeat customers. Now we could clearly define who these people were, how to find them, and decided that some were not worth our time, others were our ideal target.One of my customers, a construction franchise, had only done $6
are engaging in this strategy because you want toDo you know how much a customer is worth to you? If you don’t you should. It results in one of the biggest breakthroughs my clients have.Once you know what an average customer is worth, one of the first things you’ll notice is that there is likely more than one type of customer coming to you.We reviewed the average value of a customer for one of my clients, discovered that there were at least 3 different types of customers, each buying a significantly different average amount, some were buying only one time, and others were becoming repeat customers. Now we could clearly define who these people were, how to find them, and decided that some were not worth our time, others were our ideal target.One of my customers, a construction franchise, had only done $6
sell the stock and close the position, so you want to stay away
from doing anything that would keep you in the position longer
than absolutely necessary.
Second, you would want to make sure the option is deep enough
in-the-money, in two respects. First, the option must have a
high delta, at least in the 90’s, and second - the strike price
must be lower than what you perceive is the lowest price the
stock could reasonably go between now and the option’s
expiration.
So, you decide to sell the January 2004, 60 strike calls for
$23.00. By doing this, you have ensured yourself of being able
to sell the stock at $60.00 and you have received $23.00 to do
so.
In effect, you have sold your stock at $83.00 without selling
your stock, as long as the stock stays above $60.00 by the
expiration. This is because the buyer of the option will
naturally exercise your short call with the stock above $60.00
forcing you to sell the stock to them. You then sell your stock
at $60.00 plus the $23.00 you received from the sale of the
option.
Because this happens at January expiration, which is after the
one year time line, you now only have to pay long term capital
gains tax - instead of the muc
Politics And The Internet
According to a recent poll conducted by ComputerWorld, about forty percent of the population believes that people can increase their political power by going online. Hence, many academics believe that people in western societies are becoming more technologically educated in order to gain more influence in the political sector. For example, Mr. Jeffrey Cole, a director at the University of Southern California states, “This year, 6% of regular Internet users said they have their own blogs, 16% said they post pictures on the Web, and more than 10% maintain their own web sites. In 2003, 3% of Internet users said they blogged, 11% posted photos, and less than 9% maintained web sites.”(ComputerWorld, 2005: 1) Thus, the question raised by many is, “Is the Int
must have aAccording to a recent poll conducted by ComputerWorld, about forty percent of the population believes that people can increase their political power by going online. Hence, many academics believe that people in western societies are becoming more technologically educated in order to gain more influence in the political sector. For example, Mr. Jeffrey Cole, a director at the University of Southern California states, “This year, 6% of regular Internet users said they have their own blogs, 16% said they post pictures on the Web, and more than 10% maintain their own web sites. In 2003, 3% of Internet users said they blogged, 11% posted photos, and less than 9% maintained web sites.”(ComputerWorld, 2005: 1) Thus, the question raised by many is, “Is the Int
high delta, at least in the 90’s, and second - the strike price
must be lower than what you perceive is the lowest price the
stock could reasonably go between now and the option’s
expiration.
So, you decide to sell the January 2004, 60 strike calls for
$23.00. By doing this, you have ensured yourself of being able
to sell the stock at $60.00 and you have received $23.00 to do
so.
In effect, you have sold your stock at $83.00 without selling
your stock, as long as the stock stays above $60.00 by the
expiration. This is because the buyer of the option will
naturally exercise your short call with the stock above $60.00
forcing you to sell the stock to them. You then sell your stock
at $60.00 plus the $23.00 you received from the sale of the
option.
Because this happens at January expiration, which is after the
one year time line, you now only have to pay long term capital
gains tax - instead of the muc
Alternatives to PPC
In this article I will give you my top ten list of alternative's to pay per click search engines and will explain why they are not very effective. The number one reason PPC search engines are not effective is because of commercial competition. I used to sell DVD's on Google Adwords and I held the number one position for many keywords. If you have a unique product that is in demand you could possibly do quite well, but many times no matter what the market is, there is intense competition.If you live in the United States you can easily be out-bid by somebody who is willing to take a smaller profit on the same product. The reason people from other countries do this is because the dollar they make off a particular product goes a lot further where they live. This same t
urself of being ableIn this article I will give you my top ten list of alternative's to pay per click search engines and will explain why they are not very effective. The number one reason PPC search engines are not effective is because of commercial competition. I used to sell DVD's on Google Adwords and I held the number one position for many keywords. If you have a unique product that is in demand you could possibly do quite well, but many times no matter what the market is, there is intense competition.If you live in the United States you can easily be out-bid by somebody who is willing to take a smaller profit on the same product. The reason people from other countries do this is because the dollar they make off a particular product goes a lot further where they live. This same t
to sell the stock at $60.00 and you have received $23.00 to do
so.
In effect, you have sold your stock at $83.00 without selling
your stock, as long as the stock stays above $60.00 by the
expiration. This is because the buyer of the option will
naturally exercise your short call with the stock above $60.00
forcing you to sell the stock to them. You then sell your stock
at $60.00 plus the $23.00 you received from the sale of the
option.
Because this happens at January expiration, which is after the
one year time line, you now only have to pay long term capital
gains tax - instead of the muc
How to Purchase Online Stamps
Who has time to run out and buy stamps all of the time? In many areas, the post office is located miles away, making it inconvenient to dash in for a quick visit to purchase postage. Once we get to the Post Office we have to stand in a crowded line. What choice does one have? Thanks to the wonders of technology, one can purchase stamps and postage online.There are a couple of ways to do this. The first is to purchase actual rolls or sheets of stamps from the U.S. Postal Service’s web site. In addition to postage, you can also buy mailing envelopes and boxes. A shipping fee will be incurred and you will receive your postage within a week.The other way to get stamps online is to conveniently print them out from the comfort of your own home. It’s quite really quite
stock above $60.00Who has time to run out and buy stamps all of the time? In many areas, the post office is located miles away, making it inconvenient to dash in for a quick visit to purchase postage. Once we get to the Post Office we have to stand in a crowded line. What choice does one have? Thanks to the wonders of technology, one can purchase stamps and postage online.There are a couple of ways to do this. The first is to purchase actual rolls or sheets of stamps from the U.S. Postal Service’s web site. In addition to postage, you can also buy mailing envelopes and boxes. A shipping fee will be incurred and you will receive your postage within a week.The other way to get stamps online is to conveniently print them out from the comfort of your own home. It’s quite really quite
forcing you to sell the stock to them. You then sell your stock
at $60.00 plus the $23.00 you received from the sale of the
option.
Because this happens at January expiration, which is after the
one year time line, you now only have to pay long term capital
gains tax - instead of the much higher short term capital gains
tax.
You see what happens when the stock stays above $60.00, but what
happens when the stock trades below $60.00? Below $60.00, the
buyer of your call will not exercise their call. Under those
circumstances, you must sell the stock yourself. You will
realize whatever the market price of the stock is at that time
plus the $23.00 you received from the sale of the call.
Another strategy that would provide you the protection you need,
while buying you the time you need would be a collar. A collar,
however, can cost you money because the collar involves the
trading of two options, and therefore costs you more in
commissions.
We have discussed the collar strategy in your Home Study Guide.
When applying the collar to this situation, make sure you choose
an expiration month that is beyond the one year time period from
the purchase date of your stock. Before you make a final
decision on selling a deep in-the-money call to avoid short term
capital gains tax, make sure you check out the collar and
compare its suitability against the call sale strategy to see
which is better for you.
As you can see from our example above, the sale of a deep
in-the-money call can buy enough time and protection for you to<
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