Thread: this is a quote from David G. on the V thread, followed by my response. I am posting it here as well, in hopes of finding the answer.
<<Another thing that you can do is to place an order to buy additional stock on friday of options expiration and let them take out these new shares at a higher price.>>
David (and others): Are you sure you can do this? My buddy, who has an LLM in tax from NYU, says this is not legal. (He's been wrong before, however).
Second, as long as we are on the topic of taxes: I bought ELON at $54. I have been selling OTM calls ever since (ie: on Wednesday of this week, when ELON was in the mid 80's, I sold the April 110's for 6 3/8--too good to pass up). Anyway, do I have to take gains on every single covered call that expires worthless? OR, can I use the proceeds of the covered call to reduce my basis in the additional purchase?
TIA to any tax gurus out there.
Neal |
