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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: KevinD who wrote (11354)	8/5/1999 12:08:00 AM
From: OX	Respond to of 14162

Thanks for the suggestion... come to think of it, I kinda also do that in a tally sheet I keep for each position.

To: KevinD who wrote (11354)	8/19/1999 2:46:00 PM
From: FruJu	Read Replies (2) \| Respond to of 14162

Message #11354 from KevinD at Aug 4 1999 <em>I do it both ways. In my Gain/Loss portfolio listing, I keep my old average cost until the calls expire. In my individual worksheet for each position, I calculate my new net cost including the $$ received for the call so I can see my G/L position going forward. It helps me decide what to do as the expiration date</em> This is the way I do it too, but I've been thinking recently that I shouldn't really be deducting the full cost of the ccs off my avg cost, since that neglects any tax due on the profit from expired CCs. e.g. if I sell 10 $2 calls which expire worthless, that really only reduces my basis by $1.20 (after tax of 40%). Am I just thinking about this wrong??