What do professional money managers do about high cost shares vs the current price when still bullish ??
Every money manager buys some stock sometimes at the wrong price . They don't whine about it they actively manage the
situation. What are possible solutions with non IRA money ?? Assume you own 1,000 shares one solution is to sell in 2014 20
percent of your shares and wait the required time and then buy back your shares . That loss of capital is charged to your 2014
and maybe further out tax returns. When IOC rises as it will you will shield from taxes part of your gain you can harvest . Rinse
and repeat .
The question comes up what if IOC has a spike and you are out 20 percent of your portfolio shares ?? Use the option market
and buy calls 60 days out at the strike you are selling shares at if you must . Most just wait .
What to do about IRA money ?.The solution again is active management . Sell short term call vs part of your higher priced
shares. By repeatedly selling short term calls one can lower their cost basis . I would not sell calls vs more than 20 percent of
your position at this time .
Interoil has told the market the reason they bought back shares was for the mandatory conversion required when Interoil trades
at $95 for 30 days average in Nov 2015 . What will drive the stock price to $95 one can be the resource payment and another
can be the final Design approval for the LNG plant .
That said I would be a roller of options into that event . We will buy back our puts and collect the rewards.