How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Benchman who wrote (11244)	7/20/1999 8:42:00 AM
From: Herm	Read Replies (2) of 14162

The second round of CCs must be at a different strike or month in order to not trigger a wash sale. Have you ever noticed on your statements the CUSIP number and the option symbol? When you write CCs those numbers will match the stock number. Here is an example of a round of CCs I made recently. The Stock IFMX read #456779-10-7 and the CCs IFQ-KU read #456779-9K-U. The KU part of the code is some sort of option identifier. When you cover at a loss and do another round of CCs you will get a totally different option identifier number to match the new contracts. The NEW contracts are not the same for tax records. But, you better not cover at a loss again and write another round of CCs using the first option identifier. In other words, before 90 days writing once again IFQ-KU! :-)

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