Replies to post #6164 on Aurinia Pharmaceuticals Inc (AUPH)

[heldnova]

From Forbes

7. Sell the stock, buy a call option on it. A share of Facebook worth $27 and a call exercisable at $30 are not at all the same thing. But you run into another problem here. The wash sale statute says you can’t have a “contract or option to acquire” the security you’re selling. A call option on Facebook, no matter the strike price, is an “option to acquire” Facebook.

https://www.forbes.com/sites/baldwin/2012/06/05/wash-sale-trap-what-is-substantially-identical/3/#1bdf8ff88a75

Rick