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To: Don Lloyd who wrote (18392)4/23/2002 6:29:11 AM
From: rolatzi  Respond to of 74559
 
Don, Check with your accountant.
I will look for the applicable tax code, but my understanding is that when a covered call is established it is considered a straddle and that wash sales apply to straddles. It is not a problem if there is a gain only a loss.
More later.
Ro



To: Don Lloyd who wrote (18392)4/23/2002 4:52:29 PM
From: yard_man  Read Replies (1) | Respond to of 74559
 
I'm pretty sure from a tax standpoint that the sale of the call simply lowers the purchase price of the stock -- if you buy back the call -- the difference either increases or decreases the basis in the stock. OTW there would be little advantage in a covered call in the first place -- i.e. having to wait 30 days before rolling up or closing the position.


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