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Author: stockgame101 Two stars, 250 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121315  
Subject: Re: Tax Implication: Close Option and Sell Stock Date: 7/26/2011 4:14 PM
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Thanks all for your responses !

Hi Bob - I own the stock (so long position) and had sold (so short) the call options. So to close positions individually, I will need to sell the stocks and buy the call options. Wash-sale came up from that standpoint (since I have to buy - acquire - the call options to close out my position)

Option 1:
I will sell the stock at profit & buy the call option at loss to close out positions individually.

Option 2:
I let the call expire (and it will get exercised), which will effectively transfer (sell) my shares out.

Question is whether I will hit wash-sale in either of the above two options... I am inclined towards Option 2 per one of the earlier responses in the thread.


Thanks,
StockGame101
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