4/5     stock investing gurus,  i want to be a long term investor but i
        keep getting into situations like this: mbt bought on 11/18 now
        up 80+ %.  i feel that it has gone up too far too fast, and will
        soon correct.  what should I do?  should I like sell half of
        it to take some profit?  hold on through any corrections, or
        maybe use some options to hedge and smooth it over?  what will
        be the tax implications if i go the option route?  will i
        still get to use long term capital gains if i sell the stock
        eventually (after 1 year)?  i've never played with options
        before.
        \_ options are dangerous especially for rookies.  Beware.
           \_ agreed.
           \_ I know, but everyone has to start somewhere.  I am not
              going to use options to margin / leverage.  just want to
              use it to hedge, and will start out conservatively and
              use it sparingly.
              \_ Tax implications are the same as with stocks, HOWEVER,
                 you may inadvertantly enter the world of the day trader.
                 Some places charge extra fees for quicky turnarounds.
        \_ learn discipline, if you want to make 50% on an investment
           then sell when you make 50%. if you want to make 100% then you
           should wait. just be realistic about what you are expecting.
           80% isn't too shabby
           \_ There is a fine line between investing and speculating
              and I think you have just crossed it.
        \_ There's no shame in taking a profit.
        \_ you should make a list of rules: when do you sell a stock?
           then apply those rules to the stock.  You should do this
           before you start to invest.
        \_ You have to set your expectation of how much you want to gain.
           And don't let the long term capital gains influence your decision.
           I met too many people who chose to get long term capital gains
           and ended up with nothing.
           \_ Hey fucknut, you just overwrote about five peoples posts.
        \_ There are a few things you can do: the most conservative is
           to sell a covered call. Sell it at a price you are wiling
           to sell your stock at. If your stock goes up, you forfet
           gains, but if it goes down, the call expires worthless. Set
           the option expiration price below what your stock is selling
           at to be real conservative. This will not effect your taxable
           gain on mbt, but it will generate taxable gain of its own and
           might force you to sell the stock (if the option expires "in
           the money"). The other thing you can do, is to put "trailing
           stops" behind mbt. Set a price, say 25% below the current price,
           and put in a stop order. If the stock lowers to that level,
           you will sell it. It does not solve your tax problem, but it
           protects your profits. I run trailing stops on all my volatile
           stocks these days. It has saved me a few times. -Not really
           a stock investing guru, just not a noob anymore either.
           \_ what about just buying some put options?  would that be a
           \_ what about just buying some put options?  is that a
              noobie thing to do?
              \_ I don't have any practical experience with puts.
                 \_ you misspelled "putz."
        \_ thanks for all the help!  I think I will wait another few
           days, letting it run a little more.  then I will either
           sell half or try option.  thanks!
           \_ watch out for wash sales where you sell a stock and buy
              a stock within 30 days.  The tax break in the loss
              may not count.  But of course, if you have a profit,
              noobie thing to do?
              \_ I don't have any practical experience with puts.
           sell half or try option.  thanks!
              that's a different story.