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

To: Elroy who wrote (2440)1/18/2007 12:06:44 PM
From: Patrick Slevin  Respond to of 20435
 
Well, I think that's a more red flag kind of way to handle it.

Besides, your cost basis in ABC runs from 12/06

You have a short term loss if the option is considered separately. Holding ABC for over a year the 10 bucks is a long term basis.

Me? I'd take the short term loss, eliminating any scrutiny downstream about how you derived your basis, keep the numbers simple. Besides, if you turn this into position held for 12 months you get more favorable tax treatment on the $10 basis plus the $1 short term loss as opposed to an $11 dollar basis.

Gotta get back to SnP. Now that Helicopter Ben stopped talking the market is free to float...



To: Elroy who wrote (2440)1/18/2007 12:08:21 PM
From: longnshort  Respond to of 20435
 
I agree you don't have a profit until you sell the stock



To: Elroy who wrote (2440)1/18/2007 8:04:49 PM
From: steve harris  Read Replies (1) | Respond to of 20435
 
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.

correct
imho

settle up when you sell the stock


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