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Strategies & Market Trends : IRS, Tax related strategies--Traders

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To: Colin Cody who wrote (228)3/17/1998 5:42:00 PM
From: Allen Furlan   of 1383
 
Many savy people on this thread. Perhaps someone knows answer to this. If I sell out of the money covered calls on a ratio write,ie 2 or 3 options on each 100 shares long, the calls go into the money and I roll up to a higher out of the money strike,
A) Are all of the options bought back at a loss considered a short term loss irregardless of holding period of options.(believe answer is yes.)
B)Does the sale of original out of the money calls or of the rolled up out of the money calls effect the holding period of the stock?

The CBOE still does not have revised tax booklet and IRS didn't understand my question. Any help would be appreciated.
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