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

To: kash johal who wrote (105373)	4/14/2000 1:03:00 AM
From: Joe NYC	Respond to of 1573920

kash, thanks for the info. It means I was wrong in what I wrote to dbf. If you sell covered call, and it expires worthless, it is a short term capital gain. If the call is exercised , the premium is treated as if it was blended into the underlying stock, with long vs. short term depending on the underlying. Joe

To: kash johal who wrote (105373)	4/14/2000 1:34:00 AM
From: ptanner	Respond to of 1573920

Kash - Re: tax treatment of options <Pretty Clear HuH!!!> Thanks for providing some of the details (I am sure the IRS publication references at least a couple others ;-). Three things are clear to me: (1) This seems like guaranteed employment for tax preparers. (2) Makes me much happier to be trading in a retirement account so the tax considerations don't apply (and options are also more limited in general -- typically only covered calls). (3) When I do set up a regular trading account, I will be less inclined to use options, but if I do then I better send some cookies with my records to the tax preparer. PT