Say I own 1,000 of XYZ and have for a decade or so ago. Big capital gain, even withthe lower rate. Now, say I write some ATM calls, 10, for 1 each let's say they expire in three months, same tax year. My stock goes from 100 to 105 by day of expiration. Instead of letting the stock get called away, I buy the options back for 5. Now that is a loss (offset by the gain in my stock, yes.) So, do I take a loss on buying the options back? Any effect on the tax status of the stock I own?
- posted
16 years ago