Stock market or home improvements?

[Broncojohnny]

The stocks have been paying their own taxes and have very little gains to speak of at this point. 3-4 years ago that would be a different story. The stocks are left over from a trust I set up in my name 15 years ago (long story how that happened) and the trust has held a tax number paying on gains/loss all along.

I don't see how you couldn't have a significant gain on JNJ since the share price has doubled since 1996/1997.

[KBScobravert]

I don't see how you couldn't have a significant gain on JNJ since the share price has doubled since 1996/1997.

I have a call into the states to get a copy of my last statement. Don't hold me to this but, I think the account has paid all the gains taxes over the years. It has just been an account that I set up in 1994 and had left alone until recently. I have always kept tabs on the share prices for those two companies but not as far back as 1997 though.

I just don't see GE going to $40 again or JNJ hitting the low $70's either.

[KBScobravert]

I don't see how you couldn't have a significant gain on JNJ since the share price has doubled since 1996/1997.

I just pulled that up too. I really need to see what taxes have been paid over the years vs the initial purchase price.

[slow99]

You are paying taxes on unrealized capital gains? My guess is that you are paying dividend tax.

[Broncojohnny]

I have a call into the states to get a copy of my last statement. Don't hold me to this but, I think the account has paid all the gains taxes over the years. It has just been an account that I set up in 1994 and had left alone until recently. I have always kept tabs on the share prices for those two companies but not as far back as 1997 though.

I just don't see GE going to $40 again or JNJ hitting the low $70's either.

The only taxes paid would have been on dividends. You don't owe anything on the shares until you sell them. Right now the tax rate on dividends is 15%. In the past it has been higher.

But the bottom line is that you should still have a significant gain on your JNJ position.

And of course JNJ will go back to $70, it is only a question of time. Right now the shares are selling at a lower earnings multiple than when you bought them 15 years ago. Meaning the share price hasn't kept up with the pace of earnings growth. At sometime in the future, the market will have to recognize that earnings growth. It won't be tomorrow or even next month. It might be years but it will happen.

GE only has issues because of its exposure to commercial real estate. Things are getting better in that arena all the time. It is going to take time for them to get their shit together though. They'll be at $40 again, won't be anytime soon. I think the company could be run better than it is.

[Broncojohnny]

You are paying taxes on unrealized capital gains? My guess is that you are paying dividend tax.

Wrote the April GS $155 puts. Was fine until about Wednesday. Check out today's chart, I might need a cigarette after that ride and I don't even smoke.

Gunshy about writing the same option for May, lol, even at $145

[Nash B.]

Well, thank god the values of gold and silver never fluctuate! Also, if you figure out where to get some of that Chinese Yen, let me know.

If, by "fluctuate" you mean "never decrease," you would be correct.

Gold and Silver hold their value against inflation. If you are holding dollars and the economy tanks your money can suddenly be worth alot less. That can happen with metals too, but not as often. More often than not it works out to where you don't loose anything, or at least as much as you would with fiat money. And you can get chinese yen at most banks. Might have to give them notice but it's not hard; you get it the same way you would if you are traveling overseas and want to exchange money before you get to the other country so you have cash in hand.

Duh. Who doesn't know how to get Chinese Yen?

You are paying taxes on unrealized capital gains? My guess is that you are paying dividend tax.

Hang on, Jody. I want to hear LANTIRN's take on this.

[slow99]

Wrote the April GS $155 puts. Was fine until about Wednesday. Check out today's chart, I might need a cigarette after that ride and I don't even smoke.

Gunshy about writing the same option for May, lol, even at $145

Holy shit!

[slow99]

Wrote the April GS $155 puts. Was fine until about Wednesday. Check out today's chart, I might need a cigarette after that ride and I don't even smoke.

Gunshy about writing the same option for May, lol, even at $145

I take it your buddy at work is still loving that ALU. Big move lately... we still think it has a lot of room to the upside. At some point that becomes a short later this year.

[Broncojohnny]

I take it your buddy at work is still loving that ALU. Big move lately... we still think it has a lot of room to the upside. At some point that becomes a short later this year.

He has been travelling all week but I bet he is loving every second of it. I think he has owned that thing for a while.

[Denny]

With silver closing @ over 43 this week, I'm almost tempted to take out some insurance out, like some puts for a six month, 20% loss. Shit.

[KBScobravert]

With silver closing @ over 43 this week, I'm almost tempted to take out some insurance out, like some puts for a six month, 20% loss. Shit.

wasn't silver around the mid teens in 2007?

[KBScobravert]

Wrote the April GS $155 puts. Was fine until about Wednesday. Check out today's chart, I might need a cigarette after that ride and I don't even smoke.

Gunshy about writing the same option for May, lol, even at $145

I am gonna show that I am a big dummy knuckle dragger but...what did you just say?

[Denny]

I am gonna show that I am a big dummy knuckle dragger but...what did you just say?

Looks like he had some options on Goldman Sachs that held on until last Wednesday and went poof. Probably betting against the price.

[slow99]

I am gonna show that I am a big dummy knuckle dragger but...what did you just say?

Long put = write to sell the underlying stock at a given strike price. It's an "insurance contract" in basic terms. You pay for the insurance in the form of the put premium.

Writing a put = selling a put. If the put you bought is the right to buy at a price, the short (sold, written) put is the obligation to buy the underlying at that exercise price. Al sold the obligation to buy GS at a given price and collected the premium that the long put paid as compensation. When the stock starts moving down, the long put benefits from the insurance by selling it at the strike above market price... which means the seller of the put has to buy the stock at prices above market price.