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

To: edamo who wrote (6221)	4/9/2000 1:52:00 PM
From: rgjack	Read Replies (1) \| Respond to of 8096

Wash Sales and Options You asked for clarification on wash sales and options - take a look at the following...there's examples and other topics on taxes as well. fairmark.com BJ

To: edamo who wrote (6221)	4/9/2000 1:59:00 PM
From: AmericanVoter	Read Replies (2) \| Respond to of 8096

ed, I'll tell you my experience... I had LU common, and sold it at a loss... I wanted to turn around and buy calls as they were dirt cheap at the time, when I asked my broker at Bear Stearns, I was put in touch with someone there who told me that it will be in fact a "wash sale" and I can not claim the loss... also, "substantially similar" means the same underlying, whether be it the common or the options.... then he said, that I have to ask my accountant as they do not give tax advice... so, I really do not know, but if I were to use your approach, I would have to buy/sell the farther out contracts, wait for 30 days and then close the losing position and book the loss... best regards amein

To: edamo who wrote (6221)	4/9/2000 3:38:00 PM
From: Labrador	Read Replies (1) \| Respond to of 8096

Loss deductions are disallowed where they result from wash sales of stock or securities. A wash sale occurs if stock or securities are sold at a loss and the seller acquires substantially identical stock or securities 30 days before or after the sale (Code Sec. 1091(a) ; Reg. õ1.1091-1(a) ). Stock or securities for this purpose include contracts or options to acquire or sell stock or securities unless regulations provide otherwise (Code Sec. 1091(a) ). The disallowed loss is not permanently forgone. Rather, it is reflected in the basis of the newly acquired stock or securities.