Call Option on Financial Statement

[pmedders]

I have a client that has option activity on a financial statement, which shows several call options. I know that if a client sells the call before he exercises it, the difference between the cost and the amount he received for it is either a long-term or short-term gain or loss; but I am confused by the financial report. The report shows the option activity under federal non-reportable information. If there would be gains or losses, why would this information not be reported the same as stock sales on a 1099-B. My second quesion is how it is reported on statement. An example is:

Call Consumer Staples - $23 exp. 6/18/05 with an activity of "sale" dated 2/22/05 showing quantity of 2 and price of $75 for a total of $149.99 and then right below it shows:

Call Consumer Staples -$23 exp. 6/18/05 with an activity of "purchase" dated 4/29/05 showing quantity of 2 and price of $35 for a total at $-70.00.

Is the report actually telling me that client purchased the call on 2/22 for $149.99 and sold the call prior to the expiration date of 6/18 on 4/29/05 for $70 so he would have loss of $79.99??

[Bees Knees]

First question, call options do not get reported on the 1099-B. Don't ask why, thats just the way it is.

Second question, your client needs to tell you how to interpret the financial report. Simply ask if he or she purchased it for $$$$ on such and such a date and later sold it for $$$$ with $$$$ the amount of gain or loss on the transaction. If your client does not know, the client or you needs to talk to the broker. Don't guess if you don't know.