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Technology Stocks : BEA Systems (BEAS) - Undiscovered Growth Stock

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To: HJ Wang who wrote (1516)1/15/2001 5:35:31 PM
From: stock leader  Read Replies (1) of 2477
 
let's see if i understand your question. you buy 1000 shs. of BEAS on Dec 1 for example. then you short 10 "Jun 65 BEAS calls" on Dec 15. Since you will still be holding 1000 shs of BEAS in June, the loss from buying back the 10 "Jun 65 BEAS calls" is a wash sale and not deductible. this disallowed loss is then added to the basis of your 1000 shs of BEAS .
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