> If you write a covered call, did you "use" the asset? Yes This wouldn't make any sense, you didn't use it (unless the call gets exercised). So you have 200

> If you write a covered call, did you "use" the asset? Yes This wouldn't make any sense, you didn't use it (unless the call gets exercised). So you have 200 shares and write 1 call, you'd pay tax on the appreciation of just 100 shares? Then sell another call next week, pay taxes again? > What about presenting your brokerage statement as proof of assets to a mortgage banker? Of course not I though it was simple. Now the loopholes start to appear.