Qualcomm Incorporated (QCOM) 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.

Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 152.01

+0.3%

3:26 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: RoseCampion who wrote (61395)	1/11/2000 8:26:00 AM
From: DaveMG	Read Replies (1) of 152472

The law is intended to prevent you from doing a free, no-risk hedge of your long stock position (by selling a DIM call) just so you can keep it around for the necessary time to get long-term capital gains treatment - and as such, actually makes sense to me. It's a "if it looks like a duck" rule - if you've done something to eliminate all your risk, then you've performed the moral equivalent of selling your stock, and should be taxed the same as someone who did. Rose..Yes but can't you sell the covered calls as a hedge and buy them back before expiration, paying any short term gains on the option transaction, leaving your underlying position unchanged vis the IRS? If you end up holding the stock it must be hard for them to argue that you've sold your stock. DMG

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next