Options Message Board - Msg: 13386334

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.

Strategies & Market Trends : Options

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: rkral who wrote (6237)	4/10/2000 7:47:00 AM
From: edamo	Read Replies (1) of 8096

rkal...never suggested selling common at a loss and replacing with options.... my comment/questions if you read the full thread was that not even the irs has made any firm conclusions on pure options transactions, particularly the short sale of contracts, and implications with any wash rule....the tax code (code section 1233)addresses short sales, but only from the active or buyer side, as the buyer be it put or call has the power and control over date of exercise/assignment...this control can be used to manipulate the discussed wash sale....but the seller of the put or call does not have within their ability to demand exercise or assignment....this is what the tax code fails to address... (short sales)in fact code section 1233 states " the holding period.....is considered to begin on the date that the short sale is closed.....or disposition of property" so the still unanswered question is if i close a short put at a loss, repair same to a different strike, expiration, or underlying, does it trigger the wash sale rule....or does code section 1233 come into play to determine the date (closing) of the transaction????

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next