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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (13496)	1/23/2001 12:58:00 PM
From: Michael Hart	Read Replies (1) \| Respond to of 14162

<If I understand your intent correctly I gather you are saying that, to protect a short term gain until it becomes a long term gain> My first intent is to take some of the profit off the table when(my assumption) the stock is going to pull back because it has "run-up" to far and will pull back. If my tax assumptions hold up I believe it is better to do this with deep ITM's as opposed to shorting against them because I do not change my holding period. In regards to the tax implications I thank for your for the references from McMillan. My information is from my tax consultant who I trust very much. He showed me a paragraph from the tax code at the time I asked which said that "covered calls" do not change the holding period but I do not remember any reference to deep calls in the information he showed me. I will call him again and report back to the thread. This is an important clarification to me as I use this method often to skim $ off my positions for income. Thnx again, Mike