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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe)
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To: Henry who wrote ()9/21/1999 12:24:00 AM
From: RoseCampion  Read Replies (1) of 2241
 
Really stupid tax question, but just making sure:

I sell 10 XYZ Jan2000 puts for 5 points each tomorrow, taking in $5000. I close out the position for 1 point sometime next January.

Do I have a short-term gain of $5000 in 1999 and a short-term loss of $1000 in 2000, or do I simply have a short-term gain of $4000 in 2000? (I am assuming the latter is correct.)

Now the same question, but selling Jan2001 LEAPS tomorrow instead. The gain is still short-term, no matter how long I hold the position open, even if that's over 12 months, correct? In other words, there's no way to sell a contract and have a long-term gain?

thanks. =Rose=
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