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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: detlef gerlach who wrote (819)	5/28/2001 3:57:17 PM
From: BDR	Read Replies (1) \| Respond to of 5205

<<Is there any way that I can convert a stock I own to LEAPS without having a tax consequence.>> I believe, if you hold the stock at a loss, you sell it and replace the stock with LEAPS calls, the Wash Sale Rule will consider that a substantially equivalent holding and not allow you (or not force you depending on what you hope to accomplish tax-wise) to recognize the loss at this time. If you are holding at a profit, I don't see that you have any choice, if you sell, but to recognize the profit now whether you buy LEAPS or not. But consult your accountant or tax attorney. Or wait for some really knowledgeable poster to chime in.(g)

To: detlef gerlach who wrote (819)	5/28/2001 7:47:42 PM
From: JGoren	Respond to of 5205

just buy some more stock on margin; or buy on margin some leaps using the equity built up in the stock to pay for the leaps