Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 159.42

-1.2%

3:59 PM EST

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To: Alan Bankman who wrote (59131)	1/3/2000 3:50:00 PM
From: DaveMG	Read Replies (1) of 152472

Alan..Thanks very much for posting this tax stuff.. BUT, if you write calls and buy puts at the market price, the IRS treats you as if you sold the stock. You run afoul of the "constructive sales" rules. Does the entire transaction have to be consummated for the constructive sales rules to apply, ie, presumably you can put on the hedge and back out of it, paying short term income tax on the options and your underlying cost basis is not affected. What if you simply sell covered calls, let the contract run it's course and the stock is exercised out beyond the 1 yr cap gains holding period? TIA.. Dave

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