<<Are taxes on income from covered calls and puts considered long term or short term income? Are they e ven considered income? Only when a transaction occurs?
I have had a harad time frinding info on this subject.>>

This is on my list of topics to cover in my web site, but it's not near the top of the list, so don't hold your breath. And the rules are too complicated to give you a full answer in this forum. I can tell you that if you sell a call (covered or not) you generally don't recognize income until the transaction closes one way or the other. When it does, the tax treatment depends on the manner in which it closes. The typical transaction (expiration of the option or a closing transaction in which you buy the offsetting position) generally produces short-term gain. But you should have more detail than this before going forward.

KAT in Chicagoland
http://www.fairmark.com
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