If I buy 100 shares of a stock and immediately sell an ITM call with enough premium to To cover the share loss with a profit, does the lost value of the shares trigger a wash sale against the net gain of the premium I sold with the ITM Call?
Example:
Buy 100 shares of a stock $100 stock for $10,000
Sell ITM CC for $95 for the end of next week and take a premium of $750 (and allow it to exercise)
In this scenario you lose $500 to shares but net a $250 profit.
Does it incur a wash sale?
Thanks in advance.
Submitted March 16, 2022 at 02:47AM by Resident-Comfort-108 https://ift.tt/28AG3d6
