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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: john lilly who wrote (7443)5/12/1998 6:33:00 PM
From: Herm  Read Replies (1) of 14162
 
John,

Chances are that the CC premie could be added to the price of the stock purchase if a buy/write is executed. Otherwise, because of the short nature of CCs (one, two months out) it is always considered short term income regardless of how long you hold the stock. In summary, you can own the stock for five years and if you sell CCs along the way it is short term income.

Thanks for the question.
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