I am retired with a huge long term capital gain, say 500 sh of XYZ.
My plan is to leave it to my children so they will utilize the stepped-up basis.
But I am now skeptical of the short term outlook and indeed the price is declining. I want to avoid the aforementioned capital gain.
What to do?
I can buy puts but the premium is prohibitive (volatile equity).
Can I sell short against the box? This will nullify and price movement. I can then cover the short say in a few months when the outlook is better. Does that still work?
Mel