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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (1120)	3/19/2000 11:47:00 PM
From: Robert T. Quasius	Read Replies (2) \| Respond to of 1235

I have a tax question. I've researched it a bit, but want to confirm my conclusions. During 1999, I sold some naked out-of-the-money puts on a stock. The buyer exercised the puts in February 2000. As I understand it, there is no gain or loss on the put options I sold since they were exercised. The premium is subtracted from the strike price to determine the basis price for tax purposes, and the date is considered to have started at the exercise date, not the date I sold the puts. Can anyone confirm this for me? Thanks.