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: Sully- who wrote (669)5/20/2001 11:10:12 AM
From: JGoren  Read Replies (1) of 5205
 
if i read it right, because the amount of the disallowed loss is added to the basis of the replacement call, it merely delays recognizing the loss and so long as you close the second transaction either by expiration or buying back at a profit more than 30 days later and within the same fiscal year, it makes no difference. is that correct?

for example, sell april qcom 60 calls at .50; price goes up and you buy them back before expiration and within 30 days at 3.00 for a 2.50 unrecognizable loss, while selling july 80's for 4.20. the july 80's would thus have a basis of 2.50, so if they expire worthless, the profit would be 1.70. or is the basis 3.00 (2.50 +.50)? but what happens if you have to buy back? if you buy back at 2.40, there is a .70 loss so long as you wait 31 days? analysis, comments?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News