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To: Elmer who wrote (122026)	12/11/2000 10:31:54 AM
From: kapkan4u	Read Replies (1) \| Respond to of 186894

<Got it! You also said you would sell against the box, meaning you don't part with your shares, right? Does this generate a tax loss, assuming you bought at a higher price?> Right. This strategy only makes sense when you have a large long position. If you just sell covered puts there is too much risk on the upside. Kap

To: Elmer who wrote (122026)	12/11/2000 10:34:55 AM
From: deibutfeif	Respond to of 186894

Elmer, re:...You also said you would sell against the box, meaning you don't part with your shares, right? Does this generate a tax loss, assuming you bought at a higher price?... I don't think that the IRS allows "shorting against the box" anymore - its consider a sale of the long position (for tax purposes) - so in effect you do part with the shares. But if "short against the box" were still allowed, then you would certainly not have a tax loss (or gain) relatively to your long position - the taxable event would be closing the short position. That's what made shorting against box interesting, before the IRS changed the rules. BWDIK, ~dbf