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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Alexander Pavlov who wrote (13035)	8/21/1998 12:55:00 PM
From: Mike Maxton	Read Replies (1) \| Respond to of 18691

I would have to agree with your broker on this one. It doesn't matter what order you use to add up the results of a long, a short, and a covered call. You have in effect sold a naked call. But after options expiry tomorrow, you will have your boxed position. If holding all 3 of these positions on the stock is what your really want, I would suggest opening a new account with a different broker for your short position. I don't really see the logic in holding all 3 of these positions in one stock, however. good luck, mike maxton

To: Alexander Pavlov who wrote (13035)	8/21/1998 1:34:00 PM
From: Marconi	Read Replies (1) \| Respond to of 18691

Hello Mr. Pavlov: (re-edited) For tax purposes check IRS Publication 550. As a rule of thumb now, positions within wash sale rules, excepting straddles within 30 days of yearend are treated in such a way as to maximize short term gains, which then are taxed as such. Always consult your tax advisor for specific advise. Your brokerage sets the rules for how your account is treated. Ask about your concerns with them, and how your account might be treated differently to your favor, as well as find out what it takes to increase flexibility favorably. May be something should be adjusted there. Tax-wise, options do have an effect on underlying short and long positions with respect to risks faced -- if no variation in the value of the net position, then you are not at risk and that is the equivalent of being boxed to the best of my understanding. Please do not take my opinion as expert. Simply being friendly. I suspect netting the position is what explains your brokerage's treatment of the position. Best regards, m