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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Wayne Lian who wrote (10672)	12/14/1997 5:26:00 PM
From: David Lawrence	Read Replies (2) \| Respond to of 22053

Wayne, I'll defer to Dwight on your specific question, but buying back the call should have the desired result of closing out the artificial short and retaining the 100 shares, thus preserving their 36 month holding period.

To: Wayne Lian who wrote (10672)	12/14/1997 6:34:00 PM
From: Dwight E. Karlsen	Read Replies (2) \| Respond to of 22053

Wayne, good question. Off-hand, I doubt it, but I haven't done much tax work in the investing area. Certainly I haven't done complicated stuff. If you were qualified to write naked options when the call options were written, AND you were able to prevent the original shares from being sold (excersized) by buying and having your broker deliver newly purchased shares, then you might be able to do as you say. But in practice, you would have to act very quickly. It seems to me that you would have to buy the shares to be delivered on the same trading day as you received notification of excersize. Once the original shares are sold, you're stuck with the capital gain of 40, it seems to me. But I reiterate that I'm not an expert in the investment tax area. [Edit: David's solution of buying back the calls would probably work, if there is still time..but again, whatever you do would have to prevent the original shares from being sold...also..if you don't have a regular tax preparer (if you've been able to do your taxes so far by yourself), you should find a tax preparer now.] DK