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Strategies & Market Trends : Options
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To: AmericanVoter who wrote (6223)4/9/2000 3:06:00 PM
From: rkral  Read Replies (1) of 8096
 
Amein, Your Bear Stearns person was correct IMO about the wash sale in the LU trades you cite. From IRS Pub 550, page 51:

"A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:
1).... 2)....
3)Acquire a contract or option to buy substantially identical stock or securities."

This is unambiguous. It does not however say 'option to buy or sell', so it is very probable IMO that one could buy a put within 30 days without triggering the wash sale rule.

Regards,
Ron
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