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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: edamo who wrote (6279)9/13/1999 1:39:00 PM
From: rel4490  Read Replies (1) of 54805
 
Edamo, what you quote is correct:
"1)the loss on an expired option will be either short-term or long-term depending on how long the option was held.

4) if an option is sold prior to expiration, gain or loss will be either short-term or long-term depending on how long the option was held."

If you buy a put and then sell it the above rules apply because you the owner of the derivitive( the put). But if you "sell" a put first, you are the "writer" of the put ,not the owner of the derivitive ( the owner of the put is the person who bought it from you). The writer's gain is always short term .
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