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Strategies & Market Trends : Expirationless Options (XPOs)- The Next Big Thing
XPO 141.09+0.7%Dec 24 12:59 PM EST

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To: VLD3 who wrote (27)7/18/2005 9:12:04 PM
From: Casaubon  Read Replies (1) of 60
 
deep in the money covered calls do, in fact, trigger a taxable event. The IRS considers this sale of the DITM call equivalent to stock sale. Also, keep in mind that the market is likely to be thinly traded for such DITM calls, probably introducing an unacceptable spread to execute.
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