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To: Jonathan Edwards who wrote (6957)	11/2/2000 2:47:12 PM
From: Jim Koch	Respond to of 8218

Jonathan, an excellent point! As I said, you don't want to trade options until you understand all of the ramifications. Options investors should get IRS Publication 550, "Investment Income and Expenses" and go to the section, "Options" on page 52. Reading the next several pages will give new meaning to the word complex. You need to take into consideration many things to determine when and how to claim gains/losses, what your basis is, the impact of deep in the money options, what your holding period is and on and on and on. Lots of investors treat Options as they would ordinary stock transactions, but in many cases this is wrong, especially if you have or take a position in the underlying security. If you get audited, you could your fingers slapped! Make sure you know the rules. Jim Koch