SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Covered Calls for Dummies Thread
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Lonnie who wrote (4871)4/1/2007 2:23:44 PM
From: Uncle Frank  Read Replies (3) of 5205
 
>> If I sell stock as a result of this, my cost basis is increased by the call I sold.

That's not the way Fidelity reports it to me, or the way I report it to Uncle Sam.

Cost basis is unchanged. The revenue from the sale is increased by the amount of the covered call.

That makes sense, because, in the case of a long term holding, it wouldn't make sense to adjust the purchase that happened years ago. But the revenues from the covered call and the exercised sale of the stock occur roughly at the same time.

But wtfdik? Check with your accountant or broker.

duf
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News