GeorgeM777
Expert Alumni

Investors & landlords

The terms purchase date and sale date can be re-interpreted as opening transaction and closing transaction.  Thus, go ahead and use the purchase date (opening transaction) as the date you sold the covered call, and the sale date (closing transaction) as the date the covered call expired, or you closed it.  In this way, the transactions will be in chronological order. 

 

If you had a gain on the covered call, then your cost basis will be less than the proceeds.  We assume the proceeds were the premium you received when you sold the covered call.  If the covered call expired, then your cost basis would be zero.  If you closed the covered call position prior to expiration, then your cost basis would be whatever price you paid to close the position.  

 

@charlesclauser11 

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