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

STOCKTALK

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: KFE who wrote (11590)	9/22/1999 5:18:00 PM
From: Dan Duchardt	Read Replies (2) of 14162

To all What about selling some DITM LEAP calls against the stock instead of shorting against the box? Can that push the tax year out? If the stock pulled back, the calls would drop at the same rate (at least through a few strike levels) and could be repurchased when and if the stock bottomed out, or if not exercised, could expire. Then of course I assume you pay taxes on the call profits (unless they go up and you buy back at a loss), but that could be less than taxes on the stock, assuming your gain on the stock is now more than the LEAP premium. Perhaps then long_term / short_term rate differences have to be factored in. I've never dealt with any of this. Is there a place to get a good overview of the tax implications of writing CCs? Dan

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next