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To: miraje who wrote (173119)	2/18/2003 12:07:06 PM
From: rkral	Respond to of 186894

OT ... James, re "It's my understanding that any gain or loss from an option position is not recognized for tax purposes until the position is closed out or expires." You are correct. Per IRS Publication 550, "Investment Income and Expenses (Including Capital Gains & Losses)": "Writers of call and puts. If you write (grant) a call or a put, do not include the amount you receive for writing it in your income at the time of the receipt. Carry it in a deferred account until: (1) Your obligation expires, (2) You sell, in the case of a call, or buy, in the case of a put, the underlying stock when the option is exercised, or (3) You engage in a closing transaction." irs.gov, page 54 Regards, Ron