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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (7634)	2/29/2000 11:55:00 AM
From: bluejeans	Respond to of 9719

I believe that the majority of the rules that are troubling you will only be applicable if you cross the end of the tax year. What those rules are attempting to stop is a old tax deferral technique of selling a deep in the money call (thus effectively getting all your money and risk out of the market) while also owning a long position in the underlying stock that has a significant gain. However, in your fact pattern as I interpreted it, you would enter and close out the option in this tax year. There is a tax thread on SI where you can present a specific fact pattern and usually get an answer from a tax professional.