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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: Dan Duchardt who wrote (11592)	9/22/1999 5:51:00 PM
From: KFE	Respond to of 14162

Dan, Is there a place to get a good overview of the tax implications of writing CCs? cboe.com Regards, Ken

To: Dan Duchardt who wrote (11592)	9/22/1999 10:05:00 PM
From: OX	Respond to of 14162

first of all, don't trust anyone's answer to this unless they are a tax pro w/ lots and lots of real experience w/ options and taxes. (so don't trust anything in this post :-) selling _deep_ ITM calls has definite tax implications since it probably isn't a 'qualified covered call' to the IRS. this will result in suspending the holding period of the underlying. if held long term already, that's not so bad. you will always pay short term gains on proceeds from the written call if it expires worthless or after closing/offsetting transaction. if assigned, it's treated as same holding period as underlying. Message 11313879