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There doesn't appear to be a definitive answer for this anywhere I've looked, so...

I currently hold 200 shares of company XYZ, which are currently below my basis. I'd like to sell these shares and purchase 01 Jan calls. I'm given to understand that this will result in a wash sale.

My question is, how would I adjust the basis of the options to reflect the loss on the original shares? In all likelihood the options will be sold and not exercised.

Hypothetical numbers:

Basis in XYZ = 200 shares at $100
Sold XYZ for $70 = 6000 loss, $30/share
Bought 600 XYZ Jan 75 calls for $10/share
Sold 600 XYZ Jan 75 calls for $30/share = 12000 profit, $20/share

Any advice would be greatly appreciated.

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