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

To: andydaoust who wrote (3387)	2/23/2002 6:35:02 PM
From: Allen Furlan	Read Replies (3) \| Respond to of 5205

Andy, thanks for your reply. One aspect you mentioned about covered leaps is tax effects. I hope that I am correct in my interpretation that the losses suffered on price increase of short covered call is a short term loss and gain on stock could be long term gain. Does anyone know of caveats on this situation? I took another position on Friday of deep in the money covered leap. AES bought at 3.85 and 04/2.5 call sold at 2.4. If my assumption on tax effect is correct I hope that the position will generate a large short term option loss by 2004 to offset some large short term gains on naked calls sold on the ilk of jnpr,brcd, brcm, etc.