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Strategies & Market Trends : The Options Box

QQQ 625.46

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Jan 26 4:00 PM EST

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To: hobo who wrote (10423)	4/13/2001 1:36:15 PM
From: Joey Smith	Read Replies (1) of 10876

Toscano, Thanks for the response. I'm still unclear. I've bought calls in the past & excercised them, & "connected" the premium to the stock by reducing the cost basis. So, there was no tax consequence until I sold the stock. I found 2 web sites that talks about tax consequence for excercising your written puts. The first one agrees with my approach, while the 2nd site argues that selling puts is a special animal & it depends on a number of factors. However, the 2nd site seems to use the "connect" approach for exercising call writing, as well as exercising during call & put purchases. Not sure what to do now. I'm not sure if my broker will know the answer. What do you think? smartmoney.com invest-faq.com Thanks, Joey

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