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Author: JustMee01 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1203  
Subject: Options and wash rule Date: 5/22/2013 1:43 AM
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Actually, I have two questions:

1) If I write a put and then eventually buy that put back to close the position, are all proceeds from the put still reported for tax purposes, or can I deduct the cost of the put purchased to close the position?

and

2) If I do close a position as described above, does the wash rule impact my writing a new put?

To make it more concrete, I wrote some Linn Energy May puts. The stocks action ex-div took them down, into the money. I decided to buy the May puts back to close the position, rather than let it execute. I was still up on the trade, though.

I'm wondering if I can now write June puts at a lower strike, or do I have to wait 30 days because of the wash sale rule.

Thanks,

Peter
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