Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.39

-0.2%

11:40 AM EST

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To: waverider who wrote (76228)	7/12/2000 8:56:05 AM
From: edamo	Read Replies (2) of 152472

rick..."wash rule on puts" it is my understanding that the wash rule does not apply to the contract seller, as the seller incurs purely an "economic obligation/risk" in which there is no control over. the actual contract is closed when the seller buys it back(establishing a short term gain or loss), is assigned(owns stock with a cost adjusted by the strike less prem) or expires (short term gain). the seller really owns nothing, but has an obligation. conversely the buyer has something tangible that they can exercise at will. if you want to put the transaction into the realm of the thirty day wash rule, remember that the receipt of the premium for writing an option has no tax consequences to the writer until the option lapses, is exercised, or is offset in a closing transaction.....so you can see how the wash rule is not applicable. you sold qcom, you want to sell qcom puts, wash rule not applicable as you have not replaced the common with a like kind transaction such as a call or put buy.....you've added a non related position/obligation with a variable time frame that you have no control over. run this by your cpa....

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