Options Message Board - Msg: 13434212

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Strategies & Market Trends : Options

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To: RocketMan who wrote (6479)	4/15/2000 1:12:00 PM
From: waverider	Read Replies (2) of 8096

I have a question: If I sell some of my deep in the money QCOM 2001 Leaps ($50) for a profit then sell the 2002's ($150) I recently bought at a loss I will not have a tax liability. Then redeploy the money back into different 2002's Q LEAPS ($155). This exchange will increase my leverage by obtaining more LEAPs than I originally sold (cheaper $155's and no premium left in the $50's) and allow me to take advantage of a loss that otherwise would just evaporate (assuming QCOM goes back up of course). Am I missing something here? The IRS publications state: 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. Buy substantially identical stock or securities, 2. Acquire substantially identical stock or securities in a fully taxable trade, or 3. Acquire a contract or option to buy substantially identical stock or securities. #3 seems to answer my question in that by trading one call on the same stock for another seems to be substantially identical. Anyone have an opinion on this? Thanks, Rick <H>

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