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.
Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: john lilly who wrote (7443)5/12/1998 5:59:00 PM
From: Ira Player  Respond to of 14162
 
I believe the CC premium is short term gain if CC expires worthless or you buy it back for less than you bought it.

It is short term loss if you buy it back for more than you sold it for.

If your stock is called away, the premium is added tot he strike price and the gain is counted as the underlying stock. ST if ST, LT if LT.

Enjoy the ride,

Ira



To: john lilly who wrote (7443)5/12/1998 6:33:00 PM
From: Herm  Read Replies (1) | Respond to of 14162
 
John,

Chances are that the CC premie could be added to the price of the stock purchase if a buy/write is executed. Otherwise, because of the short nature of CCs (one, two months out) it is always considered short term income regardless of how long you hold the stock. In summary, you can own the stock for five years and if you sell CCs along the way it is short term income.

Thanks for the question.


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