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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Michael Allard who wrote (24)4/19/2001 10:39:05 AM
From: Dr. Id   of 5205
 
Anyone know the tax implications of holding covered calls through a calendar year transition?

There is no tax implication until the year that the call either expires or is called. In other words, if you sell a Jan 02 call in Dec 01, you collect the money in 01 but don't pay taxes on it until 02.

dDI

p.s. Or, like JGoren said. (doh, he beat me to it!):-)
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