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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (5545)	3/25/2000 11:21:00 PM
From: Poet	Read Replies (1) \| Respond to of 8096

Good evening all, I'm back from Mexico and a prolonged case of food poisoning. It will be years before this poet looks another oyster Rockfeller deep in its rheumy eye. I've read through the past five days' posts and see our usual multi-topic and sharp-minded interplay. It certainly is good to be home.

To: Bridge Player who wrote (5545)	3/26/2000 12:08:00 AM
From: Jill	Read Replies (1) \| Respond to of 8096

I checked with my new CPA, Colin Cody, who posts sometimes on the tax thread. He handles people who trade frequently. He said cc are treated as income. They are indeed taxable. The holder of an option (meaning any option, listed or unlisted, whether or not exchange traded, equity or nonequity) recognizes gain or loss when: (a) the option is allowed to expire unexercised, or (b) the option is sold or assigned for value. If the option is exercised, there is, generally 66 no taxable event and the premium is added to the price paid for the stock in determining its basis. Exercise of a put results in the sale of the property, and the premium is deducted from the sale price in determining the amount realized from the sale. If anybody wants more info his website is traderstatus.com

To: Bridge Player who wrote (5545)	3/26/2000 5:23:00 AM
From: kokomama	Read Replies (1) \| Respond to of 8096

Hi, BP...re: tax treatment of writing leaps... If, the first week of January, 2000...you write contracts for Jan 2001 leaps, and they expire worthless in January 2001, is that a long-term cap gain or short-term gain? Is the tax due on the premium you collected in January 2000 not due until April, 2002? I haven't done this, but am perusing the possibilities here. kokomama