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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 174.01-0.3%Nov 14 9:30 AM EST

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To: EepOpp who wrote (49173)11/11/1999 5:39:00 PM
From: The Reaper  Read Replies (4) of 152472
 
eep- Let's say someone has a bunch of Jan calls purchased a while ago, theoretically of course. Let's say someone is getting a little giddy/nervous about this position since it amounts to more money in one place than ever before by a wide margin. If someone was to sell some Jan. calls at a much higher strike price to protect some of the profits, thus creating a spread without incurring a tax liability for this year, would the option positions have to be marked to market on Dec. 31 for income tax reasons. The reason I ask is that I remember somewhere that commodity contracts are marked to market when there are spreads involved. Does this apply to stock options also? Anybody?

kirby
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