Qualified covered calls

Discussion in 'Taxes and Accounting' started by steve3052, Apr 25, 2017.

  1. My understanding is that one of the requirements necessary for a call to be a qualified covered call is that it not be part of a larger straddle. Rev. Rul. 2002-66 has concluded that a stock, long put and short call (a collar) are all one straddle, and the call should not be treated as a qualified covered call.

    What about a qualified covered call and an additional short OTM call? (long stock short 2 OTM calls, one "naked")

    Would this position be a tax straddle? How about a constructive sale?