Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I sold 7 contracts of Year 2000 NOVL April 27 1/2 option @2 1/2 last month, only to see Novell's price went up to $34 last Thursday.

With my already realized $45,000 capital gain, I decided to reduce my capital gain by rolling up/out NOVL covered calls: I bought back the calls @9 3/4, and sold year 2001 Jan 30 option @10 3/4, with one dollar credit.

I think I have created a capital loss of this trade for 1999 with about $5000. And effectively rolled my options out to Year 2001.

Does anyone have any opinions about this trade? My only purpose for this trade was to reduce the capital gain for 1999.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.