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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: BDR who wrote (3145)	12/17/2001 9:55:43 PM
From: Dan Duchardt	Read Replies (1) of 5205

Dale, Remember that you can defer recognition of capital gains with ITM options or LEAPS but you cannot convert short term gains to long term gains. How does this work? From what I have read the IRS considers the sale of ITM options constructive sales, but I've never had to look at the detailed implications of that. Are you saying that the constructive sale does not have to be recognized in the year the option is sold? Does being short the ITM call merely suspend the holding time of the underlying? Dan

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