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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Uncle Frank who wrote (3149)12/18/2001 1:58:14 PM
From: BDR  Read Replies (1) of 5205
 
A long LEAPS position held greater than one year qualifies, I believe, for treatment as a long term gain. Shorting LEAPS (or anything else) does not. I think it was in Roth's book on LEAPS where I came across the statement that buying LEAPS Puts for a stock that subsequently declines is the only way to have gains from a stock's decline be treated as long term gains. Shorting the stock will always result in short term treatment for any gains no matter how long it is held.
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