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To: Logos who wrote (37717)	11/13/2000 10:03:03 PM
From: chic_hearne	Respond to of 64865

Can you please explain the tax implications of buying a stock and selling a call on it the same day? For sake of argument, say the call has a two year time horizon. Is it counted as long term or short term capital gain, if the call is exercised or if it is not exercised. Thanks much. I'm not a tax expert, but as far as I know call options have no long term tax impact on the STOCK. If the call expires worthless, I'm not sure if you knock that off your basis price or if you have to take it as a gain for that year. I'm sure there's others here that have dealt with this before and are much more knowledgable.