Covered Calls

[John Ralls]

On Dec 11, 2013, at 6:39 AM, Les <lelliott5 at gmail.com> wrote:

> Does anyone know how to handle the sale of covered calls that expire
> without being exercised in GC? I am wondering if there is a transaction
> needed to close out the expired call. 

Of course you have to close out the expired call. Its value goes to zero, and you need to book the loss. IIRC it goes to short-term cap gains, but it's been a few years since I did covered calls and I don't remember all of the wrinkles.

Regards,
John Ralls