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To: Thean who wrote (5623)	11/28/1998 10:30:00 AM
From: SJS	Respond to of 14427

Thean, I look at them strictly as separate entities, and Schedule D them as such. So from your list, I guess the closest and correct answer is #1, adjusting commissions correctly for the transactions: 1) The cost basis being the actual amount paid for the stock (plus commission) and sold at the called price (plus the assignment costs); and the call option sold for $__ (plus the commission) and bought for $0 (no commission? - depends on your broker....) If in assigned PUT situation, I do the same thing in reverse. I take the put revenue in full (sold for X, bought at 0), and the stock I now own was purchased at the strike price, plus commission. If you use Quicken, it will figure all of this for you....