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To: Joey Smith who wrote (87014)	8/20/1999 5:47:00 PM
From: L. Adam Latham	Read Replies (2) \| Respond to of 186894

Joey and all: Re: Off-topic A question for any options experts out there: Last summer (July 1998) I purchased Jan '99 $70 ($35 post-split) CSCO call options. These particular options became profitable, so I sold half, and decided to exercise the remaining half in January 1999. <1> For calculation of long-term vs. short-term for holding the shares that I exercised, what do I use as a date - when I purchased the options (July 1998) or when I exercised them (January 1999)? My guess is Jan '99. <2> I had a short-term gain on the half of the options I sold, but how do I account for the half I exercised? I basically "lost" the premium I paid when I exercised them, so can I consider this a short-term loss to offset the gain from the half I sold? Thanks in advance for any advice. Adam