Q
   
   Qualified Covered Call
   















 

Q

Qualified Covered Call

Covered call writers have a limited exemption from the loss-deferral provision of the United States tax code's straddle rule if they follow qualified covered call guidelines in selling one or a sequence of calls against a stock position. These guidelines exempt a covered call writer from the straddle rule if he avoids very short term and most in the money call options.

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