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To: SE who wrote (13300)	4/20/1998 3:48:00 PM
From: V.	Read Replies (2) \| Respond to of 17305

I think that the "substantially similar" clause does not apply to strike month as you are indicating here, Scott. Your comments regarding closing the entire position by year end are valid, though, as it is a moot point unless the transaction remains open on Dec. 31st. I believe you are interpreting this portion of the wash rules too loosely. Options are options, regardless of the strike price or month. FWIW. V.

To: SE who wrote (13300)	4/20/1998 4:05:00 PM
From: V.	Read Replies (1) \| Respond to of 17305

From Publication 550, "Investment Income & Expenses" of the IRS code: Wash Sales You cannot deduct losses from wash sales or trades of stock or securities. However, any gain from these sales is taxable as a capital gain. A wash sale occurs when you sell stock or securities at a loss and within 30 days before or after the sale you: 1) Buy substantially identical stock or securities. 2) Acquire such stock or securities in a fully taxable trade, or 3) Acquire a contract or option to buy such stock or securities. ------------------------------------------------------------------ Stocks or securities: Under the wash sale rules, stock or securities include contracts or options to acquire or sell stock or securities. They do not include commodity futures contracts and foreign currencies. ------------------------------------------------------------------ Note no mention of strike price or expiration date is indicated in 3) above. It simply says that contracts or options are not immune from wash sale regulations. Hope this was helpful. V.