Are you sure on this one? I saw it as:
Dec 1, BASIS 1000@100
Dec 2, ST GAIN $20000
Dec 3, BASIS 1000@110
Dec 4, BASIS 200@100 (OPTIONS)
Dec 19 ST LOSS $20000(OPTIONS)
Dec 24, ST LOSS $5000 WASHED BY NEXT TRANSACTION
Dec 26, BASIS 500@80 CHANGED TO 500@90 DUE TO WASH
Dec 29, ST LOSS $20000 (FIFO, SELLING REMAINING 500@110 BASIS)OR
ST GAIN $0 (SPECIFY 500@90 SALE, CARRY LOSS TO NEXT YEAR)
Still the players call. If (s)he can use the loss, take it and continue with 500 @90. If not enough gains to offset this year, use it next year by continuing with 500@110.
Right?
Ira
Dec 1, you BUY 1,000 shares of INTC at $100
Dec 2, you SELL 1,000 shares of INTC $120
Dec 3, you BUY 1,000 shares of INTC $110
Dec 4, you BUY 200 CONTRACTS of INTC Dec 100s at a premium of $1.00 (total cost w/o comm. = $20,000)
Dec 19 the INTC Dec 100s expire worthless
Dec 24, you SELL 500 shares of INTC at $100
Dec 26, you BUY 500 shares of INTC at $80
Dec 29, you SELL 500 shares of INTC at $90
Dec 29, you STILL OWN 500 shares of INTC today, which ends the day at $90. Due to the perceived January effect, you believe INTC will hit $120 by Jan. 15 and you are hesitant to sell any more because you are concerned about the wash rule. |
