This might be a no brainer. If I wrote covered calls at a strike price of 2.5 for Jan 2010 when the underlying stock is 70c and the stock spikes to $3 and I get exercised early. Would the underlying stock appreciation from 70c to 2.5 be subject to short-term or long-term capital gain? Is being forced to sell the stock at a premium and selling it myself at a premium the same thing to the IRS? Thanks.