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

To: Joe NYC who wrote (105351)	4/14/2000 12:12:00 AM
From: deibutfeif	Respond to of 1573876

Joe and thread, re: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. Wow, that would be great if true (which makes me think it isn't). Can anybody provide a definitive answer? ~dbf

To: Joe NYC who wrote (105351)	4/14/2000 12:19:00 AM
From: deibutfeif	Read Replies (1) \| Respond to of 1573876

Joe: I think you may be confusing what happens in expiration vs assignment. If you get assigned, the premium received (gain) takes on the characteristic (shortterm or longterm) of the gain of the underlying stock surrendered (sold). I don't believe you can do this when the option expires. Anybody else care to comment? ~dbf