SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Paired Trades and Hedging Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (21)10/15/2004 6:13:54 PM
From: Nancy  Read Replies (1) | Respond to of 136
 
does not affect holding period. but the proceeds go to reduce your cost of holding.



To: Sam Citron who wrote (21)10/15/2004 10:21:49 PM
From: Biomaven  Read Replies (2) | Respond to of 136
 
out-of-the-money covered call affects holding period of underlying security position?

No, out-of-the-money calls don't effect the holding period. But in-the-money calls suspend the holding period, and deep in-in-the-money calls get taxed quite differently as straddles. For a discussion of these complex issues see:

iseoptions.com

(A little out of date, but I think the fundamentals are still the same.)

Peter


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News