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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Jon Khymn who wrote (2360)	11/5/1999 6:34:00 PM
From: Wowzer	Read Replies (1) \| Respond to of 5810

Colin, & Web Thanks for the answer that is what a I thought. This is what a friend of mine is thinking of doing. Tell me if this makes sense. He owns shares of LRCX with a cost basis of around 20. He does not want to recognize the income now but want to defer it to next year. But at the same time he wants to sell LRCX now. I suggested he sell deep in the money calls with a Jan 2000 expiration date. Therefore he has effectively sold his shares (I am talking something like Jan 50's) when they get called away in Jan and wouldn't have to recognize his covered call income until Jan as well. Is this correct? Thanks again, Rory