THREAD IS CLOSED! --- Bob Brinker Free Discussion Site 11K+: Re: Re: Re: Re: Re: Hi all

» DanG_6 - Re: Re: Re: Re: Re: Hi all

In response to message posted by Will_L:

Will, there are valid reasons to hedge a position with a capital gain. One does this by "neutralizing" the position in the current year so that the gain has been "captured" but will not be realized for tax purposes until the following year. A perfectly hedged position is not risky at all since the short position will be exactly offset by the long position. But it's also quite ineffective as far as I can see other than for tax reasons.

So unless someone wants to postpone taking a LOSS in the current year and defer it to next year, there seems to me to be nothing to be gained from hedging over the outright sale of the position.

-- posted by DanG_6