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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (646)	12/16/1998 7:01:00 PM
From: Spots	Read Replies (2) \| Respond to of 1383

Ok, maybe I'm correct. Good for me. Now, just what is it that I'm correct about? In short, what's the bottom line? Maybe we should start over with the original question. Is this a wash sale or isn't it? Or do I have some freedom here? Or what? Spots

To: Colin Cody who wrote (646)	12/16/1998 7:37:00 PM
From: Stan Michael	Read Replies (1) \| Respond to of 1383

Colin, One tactic I use is to purchase a stock position and then write covered calls against it (all short term, less than a month) until the long stock is called away (which, if I'm lucky may take several months). If the stock drops beyond my limit, I will liquidate the stock position and remain naked on any calls I've written. Is this too "investorish" for the IRS if I claim trader status? I do a fair amount of scalping 1/4's and 1/2, but if the premiums on the options look good, I nibble the % for the calls. This is in conjunction with writing selected naked calls as well, so obviously I'm not a low-risk buy-and-holder. --SJM