Interpreting Puts and Calls

[Snaggletooth]

I don't have a problem understanding what these things are, but I am looking at an E-trade statement and can't interpret the transaction codes.

The big problem is that these things are not required to be reported on a 1099-B. There is only one sale reported on the 1099-B, and it was a conventional sale of stock not involved in puts/calls.

I am seeing things like Bought QZNM90 and Sold RFYM60. There appear to be no consistency of these codes to identify the particular stock or type of security. I do think the "90" and the "60" in the examples above refer to the strike price upon exercise.

How 'bout it folks? Veritas or other Securities dealers, are you still out there?

[Snaggletooth]

Bump

Before the question gets swept into oblivion, I thought I would bump it up so the day shift could read it. Thanks for any conversation - Snag...

[AZ-Tax]

Consider using Gainskeeper and then

Have your client use "gainskeeper" which list all the trades and calculates each trades profit or loss. That should be available free from E-Trade. There is an IRS form you can attach to gainkeeper documents and mailto the IRS but I cannot think of the form number. I have a client who has approx 100 trades per year and for 06 and 07 I was entering each trade then I found out about this IRS form that can accompany a document that itemizes out each trade for their profit and loss and totals all trades up for their total profit or loss. I need to run to an appt when I return I will look for the IRS form #.

[Mike Mac]

Explanation

Page 6-10 of the Tax Book talks about Puts and Calls. You really have to talk to the client to see what he/she did with them to determine if they are a gain, loss, or an adjustment to basis.

Editted.......
Sorry Snags. After I re-read your message you did say you knew how to handle them. It was the codes that did not make any sense. The one's I've seen are coded like your examples.