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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (41309)	4/2/2001 11:13:17 AM
From: Mathemagician	Read Replies (1) \| Respond to of 54805

I believe the IRS views selling deep ITM calls as resulting in a "substantial reduction of risk of loss" and considers the holding period for the stock to end the day you put the covered call in place. In other words, your short term gain in August will still be a short term gain for tax purposes in January when you get called away, albeit it is now reported in the next tax year. But check with your tax advisor. Aha! So you still get to defer until the next year, but the holding period is suspended during deep ITM calls. Got it. Thanks for the link! M@IShouldHaveSuchProblemsAsCapitalGains.pov