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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?


To: mod who wrote (2234)7/1/1999 8:42:00 PM
From: Chuzzlewit  Read Replies (1) | Respond to of 5810
 
A very simple options question:

Suppose you sell covered calls at $4, and then repurchase the calls at $6 on the day the options expire. Then suppose you immediately sell new calls against the same stock (but these calls have a higher striking price and a different expiration) -- say at $6. Do you have a $2 loss on the original call? How do wash rules apply here?

CTC