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To: StockHawk who wrote (6232)9/12/1999 10:41:00 PM
From: rel4490  Read Replies (1) | Respond to of 54805
 
re: tax consequences of selling options.

The sale of an option followed by a closing purchase is by definition a short sale. A short sale of a security can never result in a long term gain or loss since your holding period is only measured from the date you became long the security. All short sales are taxed as short term transactions.