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Hi, my question concerns LEAPS.

How does one account (tax-wise) for LEAPS sales? Hypothetically, say on Jan
3, 2000, Juan buys QCOM Jan 2002 LEAPS X=100, at a premium of 20, then
sells them 18 months later with a premium of 40? Does he pay taxes on a long
term gain or does he have to follow some 60/40 rule that i've heard about?
Thanks in advance!
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