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Non-Tech : Paired Trades and Hedging Strategies
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To: Sam Citron who wrote (21)10/15/2004 10:21:49 PM
From: Biomaven  Read Replies (2) of 136
 
out-of-the-money covered call affects holding period of underlying security position?

No, out-of-the-money calls don't effect the holding period. But in-the-money calls suspend the holding period, and deep in-in-the-money calls get taxed quite differently as straddles. For a discussion of these complex issues see:

iseoptions.com

(A little out of date, but I think the fundamentals are still the same.)

Peter
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