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To: Thean who wrote (9077)	6/19/1999 2:19:00 PM
From: SJS	Read Replies (1) \| Respond to of 14427

Yes Thean. Many. Fidelity uses 5/8 point over/under as the gray (they call it a "lottery") area. I've been put on the strike price directly. I've been put for 1/4. I've been called for 3/8. Frankly, I would consider the stock gone, and be surprised it is ISN'T and you get the call premium totally unencumbered. PS: Tax wise, I've been doing options and stock the same way for 20 years, way before they even did 1099 gross proceed rollups.... Much less complicated and logical "my" way, isn't it? I can at least defend it if ever audited!!! Steve

To: Thean who wrote (9077)	6/19/1999 2:57:00 PM
From: SJS	Read Replies (2) \| Respond to of 14427

Thean, One more thing. Here's a section that could prove interesting from a tax perspective. First, the section: _______ If a call you write is exercised and you sell the underlying stock, increase your amount realized on the sale of the stock by the amount you received for the call when figuring your gain or loss. The gain or loss is long term or short term depending on your holding period of the stock. Now.......If you've got stock that would be ALL a LT gain, and you want to turn all the call premium (which is normally ST gain) into a LT gain without waiting a year, do it the IRS way to make it ALL a gain LT!! This works out great for the taxpayer and will save you tons of tax because you now have 1 SYNTHETIC LT transaction combining the two (1 LT stock transaction and 1 ST call transaction) you've done. If I understand this correctly, this could be strategically a cool way to do this and save money. Alski, do I have this correct? Steve PS: Thean, we're probably paying more tax than we have to! That's why the IRS leaves us alone!!