John Hergert wrote:

- quote -

You enter the straddles on Form 6781-- Gains and Losses From
Section 1256 Contracts and Straddles.
http://www.thestreet.com/pf/funds/taxforum/792126.html has
some relevant info on that and other option info..

- quote -

No. They are not considered to be substantially the same
investment.

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John Hergert <hergert[at]home.msen.com> wrote:

- quote -

See IRS Pub 550 for info, and be careful to not eif you have
to mark to market -- which you might for your straddles.

- quote -

Even if you do not mark to market the different expiration
dates mean they are not substantially identical unless well
in the money.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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I've been trading OEX credit spreads this past year and am
now starting to think about how to do my federal taxes. I
have two basic concerns and am looking for what would be
called the conventional wisdom on handling these options. Is
there some place where these types of issues are documented?

1. On schedule D do I list each individual option even
though they were transacted as a pair? i.e. Sell one option
and buy another to create a straddle credit. Or can I enter
the spread as a combined transaction?

2. What about wash sales? If I sell a March OEX spread that
looses money, does my selling an Apr OEX spread 3 weeks
later constitute a wash sale?

Thanks for now.

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