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Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (2439)	1/18/2007 12:00:22 PM
From: Elroy	Read Replies (3) \| Respond to of 20435

I'd have to defer to an accountant but I think you have a short term loss. Your basis in ABC is 10 dollars. When you sell the stock at whatever the gain is whatever less 10. My hunch is that I have a cost basis of $11 per share on the trade, ($10 per share paid, plus $1 per share for the option), but no profit until I sell the ABC stock. Just want to see if that is correct. Or maybe I have a cost of $10 per ABC share and also a separate trade where I lost $1 per option (paid $1 and never sold it). If that's correct then the $1 per option loss would be a '06 taxable event. Taxes suck!