Urgently need help prior to filing Income Tax Return to understand how or if wash sale rules apply to equity option trades.Following is an example of a real trade:7/20/97---Sell 20 calls to open:CEPH, Nov 12 1/2's at 211/15/97--Roll out calls by executing spread order: Buy 20 calls to close:CEPH, Nov 12 1/2's at 3 Sell 20 calls to open:CEPH, Feb 12 1/2's at 42/20/98---Options expire as stock price has dropped below strike price There were no other purchases or sales of CEPH stock oroptions during the period covered or within 30 days prior to origial purchase or after option expiration.Do the above transactions constitute a wash sale? ORCan I report the Sell at 2 and Buy at 3 as a $2000 short term loss for 1997 and then a $8000 short term gain for 1998 based on the Feb 12 1/2 calls expiring?Thanks in advance for any comments.
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