SI
SI
discoversearch

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 : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?


To: LV who wrote (1234)11/20/2000 9:35:27 PM
From: Dan Duchardt  Read Replies (2) | Respond to of 1383
 
LV,

If I buy a stock and simultaneously sell covered call, when the call expires and I keep the stock can I reduce my stock basis by what I received for the call or do I have to declare the covered call proceeds as income?

It's a short term capital gain, regardless of how long the option was held open. Check the following link from CBOE

cboe.com

Scroll down to find the header Short Calls

Dan