Australian (ASX) Stock Market Forum

Need advice please on ANZ

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mim168 said:
I know about that, I was just making a comment that $8000 is a lot to make when the shares are all going south . thanks
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its true the market is falling to its knees but the biggest percentage losers have come from the banking and financial services.

thats where i make my point about resource stocks as a safer alternative. Gold for example is heading towards 1000 with the likes of NCM, LGL both doing well from this, lets not forget iron ore, coal, oil, grain and other raw commodities
 
Hey Guys, couldnt find another ANZ thread so thought ill post here, I have just brought some shares in the ANZ Yesterday @$18.07 a share, brought $5000 worth = 275 shares.
 
I have been skimming through this thread and the subject of wash sales got me thinking. How the ATO view the following hypothetical situation, say I wrote a covered call, in the money, expecting a pullback on the underlying but unexpectedly a small rally occurs and assignment happens, because I never intended to sell the stock I buy it back.
On paper it looks like a wash sale but not in intent.

Any thoughts.

Cutz.
 
cutz said:
I have been skimming through this thread and the subject of wash sales got me thinking. How the ATO view the following hypothetical situation, say I wrote a covered call, in the money, expecting a pullback on the underlying but unexpectedly a small rally occurs and assignment happens, because I never intended to sell the stock I buy it back.
On paper it looks like a wash sale but not in intent.

Any thoughts.

Cutz.
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This is probably a question for your accountant or maybe even a phone call to the ATO.

Anyway, my uneducated shot at is that it most likely comes down to intent. If one is regularly writing covered calls and it is part of the usual trading strategy, then hopefully the ATO would be OK with it. The other thing is to have a trading strategy/plan written out which would support the fact that one is trading to make money from the sold calls.

I was trading covered calls some years ago now, however, as I have been on trader status with the ATO, capital gains were not applicable anyway - so the above is nothing more than a guess. Hopefully someone else can help...
 
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