gcgang
Thinks s/he gets paid by the post
- Joined
- Sep 16, 2012
- Messages
- 1,571
Looking for feedback on whether I'm thinking this out right.
A covered call has run deep into the money. Ok to sell the position to rebalance. Subject to full capital gains taxes. Have mutual funds that make annual realized short and long term distributions.
Does it make more sense to buy the call back, realizing a short term loss (offsetting some of the fully taxable MF STgains) and sell the underlying stock at a larger (lower tax rate) long term gain, than just letting the security be called, realizing a smaller long term gain?
A covered call has run deep into the money. Ok to sell the position to rebalance. Subject to full capital gains taxes. Have mutual funds that make annual realized short and long term distributions.
Does it make more sense to buy the call back, realizing a short term loss (offsetting some of the fully taxable MF STgains) and sell the underlying stock at a larger (lower tax rate) long term gain, than just letting the security be called, realizing a smaller long term gain?