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To: kapkan4u who wrote (122030)12/11/2000 10:41:01 AM
From: GVTucker  Respond to of 186894
 
No, you do not generate a tax loss. Shorting against the box is no longer a tax saving strategy, as of last year.

Again, if you didn't undertake this strategy, you would have been long 100,000 shares. After undertaking this strategy, you're long 80,000 shares and short puts controlling 20,000 shares. They're different positions.