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Old 02-25-2004, 04:52 PM
Wildbill Wildbill is offline
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Join Date: Sep 2002
Posts: 896
Default Re: I have to sell some stock...

Just a matter of what situation you are in. I often sell calls when the stock is running well. Instead of selling it out after a runup, I give it a chance to run a little more with a covered call. If it hits that point I get even more profit. If it goes down I get a little insurance to cover my losses. If the stock isn't running well then obviously selling a call isn't going to do you much good unless you sell a slightly in the money call. Even then, sounds like you probably don't have enough shares to make good use of this strategy.

Do the math and see if you can raise enough selling calls to cover what you need. If you have several hundred shares each and need 10Gs you probably are a little short of what you need, but maybe if you sell calls on all with some close to strike price you might raise enough.

Otherwise just sell the stocks that have run up the most, provided you have held them more than a year.
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