ed, I'll tell you my experience...
I had LU common, and sold it at a loss... I wanted to turn around and buy calls as they were dirt cheap at the time, when I asked my broker at Bear Stearns, I was put in touch with someone there who told me that it will be in fact a "wash sale" and I can not claim the loss... also, "substantially similar" means the same underlying, whether be it the common or the options.... then he said, that I have to ask my accountant as they do not give tax advice...
so, I really do not know, but if I were to use your approach, I would have to buy/sell the farther out contracts, wait for 30 days and then close the losing position and book the loss...
best regards
amein |
