Tax Loss Selling Candidates (DELL and YAHOO)

On Monday's I usually like to look over my portfolio for sale candidates.  I'm look ahead of tax-loss selling season for individuals (which gets going around the second week of November and usually lasts until the end of the year).  Since many of the widely held stocks are up on the year and active traders likely have big gains, I wanted to look for widely held and actively traded stocks that are down on the year - and down significantly from their highs.


Two stocks that qualify in this regard that I hold are Dell Inc (DELL) and Yahoo (YHOO).  I want to sell them early enough that I can buy them back before the year end and still not get hit with the Wash Sale Rule on my taxes.  (The wash sale rule negates any losses taken on a stock if it is repurchased within 30 days).  This only would apply to my Yahoo position since the DELL position is a gain.  (Purchased at at average price of 21.10 late in July and early August).

Dell Sold at $24.62
Yahoo sold at $26.67 (I am short 35 and 30 strike calls against this position - I did not cover those)

My first Yahoo buy write from April mentioned here I bought at 30.67 and sold 32.5 strike calls at$1.70.

Disclosures and confessions:  I own YHOO.  (I am short Jan 2008 35 and 32.5 strike calls on YHOO)

Disclaimer:  Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell.  I do not give investment advice.  Do your own research.  Do not rely on anything in this weblog to make investment decisions.  I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security.