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

To: Wowzer who wrote (2361)	11/5/1999 6:55:00 PM
From: RoseCampion	Read Replies (1) \| Respond to of 5810

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. Nice strategy. So nice, in fact, that by the early 1990's everyone was doing it and Congress [rightfully, IMHO - sorry] took it away. This kind of no-risk position triggers (if I recall correctly) the 'identified straddle' rules and forces the recognition of the entire gain in the current tax year. Not what is intended, yes? -Rose-