Need some clarification on covered call option dates

Okay when reporting CALL & PUT purchases these are handled like you would a basic stock purchase and sale correct?

But when dealing with covered calls, how do I enter that? What's confusing me are the dates for example:

11/10/2009 - BOUGHT TO CLOSE 40 CONTRACTS OF OPTION .GIYKE ($257.00)

11/6/2009 - SOLD TO OPEN 40 CONTRACTS OF OPTION .GIYKE $142.99

Do I enter that like this:

Description: AMBAC INC 40 NOV COVERED CALLS Date Sold: 11/06/09 Net Proceeds: 142.99 Date Acquired: 11/10/09 Cost Basis:$257

It's confusing because the dates are backwards.

When reporting expired covered calls is it handled like this? What do I enter on date acquired?

Description: AMERICAN CAP LTD 10 JUN COVERED CALLS (EXPIRED) Date Sold: 6/12/09 Net Proceeds: $80.49 Date Acquired: Cost Basis $0

Thank you!

Reply to
dman81
Loading thread data ...

No different from a short sale. Yes, the buy date is after the sale date. You got it right. Joe

Reply to
JoeTaxpayer

What about this???

When reporting expired covered calls is it handled like this? What do I enter on date acquired?

Description: AMERICAN CAP LTD 10 JUN COVERED CALLS (EXPIRED) Date Sold: 6/12/09 Net Proceeds: $80.49 Date Acquired: Cost Basis $0

Please advise..... Thanks!

Reply to
dman81

The Date Acquired is the date it expired: before that date you were short the call, after that date you weren't.

Or, look at it from the other side: the buyer acquired the call when you sold it, and "sold" it on the date it expired.

Seth

Reply to
Seth

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.