I'm trying to come up with a formula that tells me how far a stock must fall from a selling point before I re-purchase it with the assumption it will regain the selling price. In other words, if I sell stock and pay capital gains, at what point could I re-buy the stock to offset taxes paid with the following assumptions:
- Long term capital gain.
- 0.15 tax rate.
- Cost basis/share < selling price/share
- Assumes stock will go down.
- Assumes stock will recover to selling price.