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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: deibutfeif who wrote (105337)4/14/2000 12:01:00 AM
From: Joe NYC  Read Replies (3) | Respond to of 1573857
 
dbf,

Expired calls are short term capital gains (in the amount of the premium) with the attendant tax consequences. Actual basis in the underlying position does not change.

I think that's a conservative way to treat them. You can (I believe) use the premium to lower your cost bases of the stock, and not report the gain on the calls. Instead, you will report higher gain when you sell your stock.

Joe



To: deibutfeif who wrote (105337)4/14/2000 12:17:00 AM
From: kash johal  Read Replies (1) | Respond to of 1573857
 
Deibutfeif,

Yes, clearly the call premium would be short term cap gain.

My thinking is to trade the covered calls unless AMD simply move up and away to north of $100 (yeah right).

All the while leaving my core position alone and hope to pay long term cap gains.

regards,

Kash


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