How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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

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To: FruJu who wrote (9634)	2/14/1999 9:34:00 PM
From: Herm	Read Replies (2) of 14162

Your Aug. 7.5s and Sept. 7.5s on the same stock are essentually different contracts. Therefore, your loss applies and you can deduct it in that tax year unless you roll forward that deduction because you max. out deductions against earned income. The wash sale does not apply for the above options. If your CCs are exercised the cost vs. the income from the calls are factored into that stock. Thus, the profit from the options would be part of the proceeds and taxable vs. the commissions paid which is part of the net cost basis. The options and the stocks have a cusip number that documents the stock and the associated options. W When you look at your broker's statement at the end of the year you will notice that number is the same and it is very easy for them to double check! I use TurboTax Delux and it is a piece of cake documenting all of the transactions!

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