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Strategies & Market Trends : Calls and Puts for Income

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To: Robohogs who wrote (5179)6/19/2012 2:33:27 PM
From: katytrader  Read Replies (1) of 5891
 
Jon, as I understand IRS logic, a short does not own anything. A gain can only be realized when one sells what one owns....so when you close the position by buying back the put or expiry, you have only "owned" the position for an instant (if at all) If shares are assigned, your holding period starts when you buy the shares, not when you sold the put. I'll see if I can dig up the relevant IRS reference.

katytrader
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