Stocks & options

[TAX]

Client has stocks sale as well as options. How Do I report options which has terms like "open" or should I ignore options?

This return is for 2005.

Thank you in advance for help.

[TAX]

These are option trading and not employee options.

[Snaggletoof]

Dated

I'm assuming these options are dated, purchased as of one date and exercisable on another. If it turns out that the option price is greater than the market price when the options expire, then they are worthless and can be written off as such on a schedule D. If they are sold prior to expiration to another party, they are also reportable on a schedule D.
If the options are exercised, then the cost of the option simply rolls into the basis of the target stock.

When reporting on a Schedule D under the description of the holding, I always indicate a small "s" if the seller has disposed of shares and a small "o" if he has disposed of options.

[♠♠♠♠]

Snaggletoof is right, also there is information on option (put and call) in TTB 6-8 and 6-9

[Possi]

option sales

I'm assuming these options are dated, purchased as of one date and exercisable on another. If it turns out that the option price is greater than the market price when the options expire, then they are worthless and can be written off as such on a schedule D. If they are sold prior to expiration to another party, they are also reportable on a schedule D.
If the options are exercised, then the cost of the option simply rolls into the basis of the target stock.

When reporting on a Schedule D under the description of the holding, I always indicate a small "s" if the seller has disposed of shares and a small "o" if he has disposed of options.

My dear brother just sent me his tax package with pages of stock options bought and sold. Hi has notated them nicely.
I have used the TaxBook and the website to refresh my memory on this. One question I have is this;
What do I put in the description on the Sch D?
He also wrote "All options trades. No short trades. No equity trades."
Thanks for any input.
~possi