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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (39779)	11/17/2000 2:34:05 PM
From: Jerome	Respond to of 70976

if you sell covered calls and buy them back at a higher price, would you be able to record a loss on your option trade? That is correct.Using the price from a few minutes ago. AMAT at 41 1/4 the Dec 45's are worth 2 1/8 by 2 1/2 the Dec. 47 1/2's are 1 1/2 by 1 3/4. Now suppose that you do some of each option and AMAT at 49 on the 15th of DEC. You can buy calls to close on that date. The 45's would cost you 4 and the 47 1/2 would cost you 1 1/2. This would give you a tax loss on the 45's and a smaller tax loss on the 47 1/2 because you have to count the commission costs of the transaction as a cost. Jerome