ownyourfuture
Thinks s/he gets paid by the post
- Joined
- Jun 18, 2013
- Messages
- 1,561
I've sold plenty of covered calls over the years, but with this one, the premiums are huge & that could cause major tax implications.
As I understand it, if I sell a covered call with an expiration date of December 19, 2025, the premium received only becomes taxable when..........
A: The option expires worthless.
B: Is closed with a closing purchase transaction.
*C: When/if shares are called away/assigned.
*I'm aware that I'd also be responsible for capital gains on the underlying shares at the time of the sale.
As I understand it, if I sell a covered call with an expiration date of December 19, 2025, the premium received only becomes taxable when..........
A: The option expires worthless.
B: Is closed with a closing purchase transaction.
*C: When/if shares are called away/assigned.
*I'm aware that I'd also be responsible for capital gains on the underlying shares at the time of the sale.
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