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

To: Jill who wrote (5548)3/26/2000 11:28:00 AM
From: Bridge Player  Respond to of 8096
 
<< 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. >>

As you pointed out in your post, these statements apply to the holder of an option who elects to exercise and not to the writer.

BP


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