Anavex Life Sciences Corp (AVXL)

[Bourbon_on_my_cornflakes]

Not sure, but if the option was at $4 and the stock is at $24, at the date of purchase you would have a $20 gain from the conversion (sale) of the option as you put up $4 and receive property worth $24. I would think that is taxable at that time. Now going forward, your cost basis is $24 on the stock, so any sale of the shares would calculate gain from $24.