The Covered Calls for Dummies Thread Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Covered Calls for Dummies Thread

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Uncle Frank who wrote (4265)	5/19/2004 9:27:34 PM
From: Dr. Id	of 5205

Wouldn't that be true of buying puts against a long position as well? duf If you sell DITM calls, it is basically a way of locking in a price at a future date (for example to extend the period in order to be long term in the stock). Therefore, it is deemed to be a "constructive sale"...you wouldn't get the long term advantage. If you're buying a put as insurance, I'm not sure what would be "illegal" about that. Maybe there is a scenario in which the IRS would also consider you to be a short term holder if you're buying a put a few strikes into the future. Not sure.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next