Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: waverider who wrote (6495)	4/15/2000 1:20:00 PM
From: RocketMan	Respond to of 8096

I don't know how it works with options, but with stocks, if you buy or sell the same stock within 30 days you can not take the loss. However, you have to report any gain you make. To take the loss, assuming you eventually have one, you have to realize the loss and stay away from that stock for at least 30 days. It appears from rule #3 that options work the same way. I am in no way a tax advisor, so this is just my opinion. I am just now printing out my 1999 tax book to mail to the IRS, and based on what I owe, I can see that a lot of selling this year must have been to rais money for Uncle Sam. Ouch!

To: waverider who wrote (6495)	4/15/2000 2:38:00 PM
From: Poet	Respond to of 8096

Hi Rick, Nice to see you here. You're asking some great questions. In a nutshell, I believe that the same wash sale rules apply to options as they do to equities, so if you're purchasing calls on the same stock within a month, you'd trigger a wash sale. I sold off the last of my QCOM 2001 LEAPs (all DIM) over the last month, as approximately nine months before expiration, the time decay accelerates and they begin to act like regular calls. I've been planning to use the proceeds (which have been eaten bigtime by the market this week) to buy the 2003 LEAPs series, available in July, about 20% OTM. You might consider something along these lines.