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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: KFE who wrote (11590)	9/22/1999 5:04:00 PM
From: Herm	Respond to of 14162

The gentleman is most likely better off selling if he's nervous about it or go with CCing the LEAPs with the intent to cover later. Thanks for your input.

To: KFE who wrote (11590)	9/22/1999 5:18:00 PM
From: Dan Duchardt	Read Replies (2) \| Respond to of 14162

To all What about selling some DITM LEAP calls against the stock instead of shorting against the box? Can that push the tax year out? If the stock pulled back, the calls would drop at the same rate (at least through a few strike levels) and could be repurchased when and if the stock bottomed out, or if not exercised, could expire. Then of course I assume you pay taxes on the call profits (unless they go up and you buy back at a loss), but that could be less than taxes on the stock, assuming your gain on the stock is now more than the LEAP premium. Perhaps then long_term / short_term rate differences have to be factored in. I've never dealt with any of this. Is there a place to get a good overview of the tax implications of writing CCs? Dan