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

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To: mc who wrote (9863)3/3/1999 7:34:00 PM
From: Kalman  Read Replies (2) of 14162
 
Herm,
In your power point presentation (page 16) you mention that covered calls are taxable in the year in which they are paid. I think Gary is right and they are only taxable when they expire. The only exception is when you write deep in the money calls in which case uncle sam looks at it as a constructive sale and taxes you on the gain on the underlying security (including the call proceeds). I could be wrong...

Kalman

What do you think of BT? Pick up a round of premiums and dividends before the merger with little downside risk.
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