I am not looking to lower the basis on a subsequent purchase. Rather, I am wondering if I can lower the basis on a prior purchase. For instance, I have a $54,000 cost basis on my purchase of 1000 ELON. Since then, I have sold approximately $6,500 worth of calls (the March's expired worthless, and let's assume the Aprils will too). My question is whether I have to take the $6,500 as short term capital gain, OR whether I can reduce my basis in ELON to $47,500. I am assuming that I have to take the short term gains, but I am hoping someone out there will tell me otherwise.
Neal |
