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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (18378)	4/22/2002 7:19:18 PM
From: rolatzi	Read Replies (2) \| Respond to of 74559

If I have a covered call and the stock continues to rise then the call increases in value, which gives me a loss since I am short the option. If I decide that I want to hold the stock and the call has increased in value, I need to cover the call which generates a loss. If I buy back the call option within 31 days then I can't take this tax loss on the option until I sell the stock at which time I can fold the loss into the basis of the shares. I hope that is clearer. Ro