What are my options for SMY?? CFD perhaps?

[benwex]

I bought in November at $1.90. I want to hold for 12 months for tax reasons but am worried the SP is tracking back and by November my wins would have erroded.

Someone tried to explain to me that I could use a CFD account collatarising my stock and this would help me.

Can anyone please help me to understand the benifits of CFD's in my situation??


regards,
Ben

 

[bvbfan]

With the short CFD position you basically are locking in your sell price now for when your 12months hold comes up.
On that day you close the CFD short by buying back while you sell your shares the same time.
In the meantime you will get interest on your short position.

Another option is using something like the Comsec short selling function if its available on your stock and you are eligible for it.

 

[rub92me]

So it gained about 180% from when you bought it and now retraced about 35% from the highest high. The way I look at it: if it hit your stop sell now. Better to pay high tax on high gains than low tax on no gains. Personally I'm not selling as the retrace is well within my parameters for a normal retrace after such a quick gain and the fundamentals still look solid.