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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe

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To: Dan Duchardt who wrote (976)4/13/2004 7:28:35 PM
From: Howard R. Hansen  Read Replies (1) of 1064
 
Dan, thanks for your reply. I have since found out that the first quote in my post applies to holders of options, a person who opens a position by buying a put or call. Whereas the second quote applies to writers of options, a person who opens a position by selling a put or call. Anyone know why the IRS uses different rules for determining short or long term gains for holders and writers of options?

PS The IRS has a nice table on page 57 in publication 550 that summarize the tax rules for options.
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