Buying back covered calls

[ferrycorsten]

Quote from Tradingdummy:

any reason you don't want to have your stock called away?

Calls are slightly ITM.....fearing they will go deep ITM in the next 2 weeks.

Also don't want to pay tax....I have huge gains on this stock.

 

[Tradingdummy]

Quote from ferrycorsten:

Calls are slightly ITM.....fearing they will go deep ITM in the next 2 weeks.

Also don't want to pay tax....I have huge gains on this stock.

Sounds like you’re in a "damned if I do, damned if I don't." I wouldn't do this, but you could take the premium of your short calls and go long calls on this stock. I personally would let them call me away, and move on to the next trade. However, neither will help your tax problem, and I'm in no position to give advice. Good luck on however you decide to go about this.

 

[newwurldmn]

Quote from ferrycorsten:

Calls are slightly ITM.....fearing they will go deep ITM in the next 2 weeks.

Also don't want to pay tax....I have huge gains on this stock.

That's the problem with buy writing (and put selling). You have lots of taxable events.

Btw - your dividends aren't considered qualified if you have options written against them.