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

To: Spots who wrote (2371)	11/10/1999 1:17:00 AM
From: Ira Player	Read Replies (1) \| Respond to of 5810

From page 53 of Publication 550... A qualified covered call option is any option you grant to purchase stock you hold (or stock you acquire in connection with granting the option), but only if all of the following are true. 1) The option is traded on a national securities exchange or other market approved by the Secretary of the Treasury. 2) The option is granted more than 30 days before its expiration. 3) The option is not a deep-in-the-money option. 4) You are not an options dealer who granted the option in connection with your activity of dealing in options. 5) Gain or loss on the option is capital gain or loss. I get tangled up on number 2 often. I like to grab the premium in the last few weeks, sometimes... Ira