Covered Calls

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L1: Covered CallsWithin a SEPP plan, can you write covered calls against the stock that you own in the IRA? It seems to me to be OK, but worth asking the question.Thank You.2010-02-25 22:41, By: Jimbo, IP: []
L2: Covered CallsCovered calls should not present a problem, with or without a SEPP. Just don’t have so many that you don’t have other IRA assets available for the required SEPP distributions.2010-02-25 23:08, By: Alan S., IP: []

L3: Covered CallsIf you are asking about having covered calls outside of your IRA ( SEPP or traditional), the IRS finally ruled after 10 or more years, that you cannot take a loss on your 1040 for any stock that you bought or sold within 31 days before or after. The IRS ruled that “wash sale” provisiosn apply, even though the IRA is a separate “entity” from you as an individual.If the covered call is within the same SEPP as the stock, then that is ok since there is no taxable transaction involved.2010-02-26 00:53, By: dlzallestaxes, IP: []