Report a put or a call option that you purchased and income from the option in Part 6.

For You, Your Spouse, and Your Dependent Children

Part 6

Reporting a Put or Call Option That You Have Not Exercised

Report a put or call option if its value was more than $1,000 at the end of the reporting period or if more than $200 in income was received during the reporting period.

Description:  Provide the name of the option, which should include the name of the underlying security and the type of option (e.g., “Widgets Unlimited (WIG), put option”).

EIF:  Select “N/A.”

Value:  Report the value of the option by selecting the appropriate category.  If the option is “underwater” or if the value of the option is otherwise difficult to determine, write “value not readily ascertainable” in the “Description” field and provide the following information: (1) the number of units of the security for which the option exists; (2) the strike price; and (3) the expiration date.

Income Type:  Specify the type(s) of income if the total amount of income received during the reporting period exceeded $200.  Options normally do not produce income until they have been exercised or sold.

Income Amount:  Select the category corresponding to the total amount of income received during the reporting period, which is usually “None (or less than $201).”

Reporting a Put Option That You Fully Exercised

If you fully exercised a put option, neither the option nor the underlying security will have any reportable value.  Report the underlying security if more than $200 in income was received during the reporting period.

Description:  Provide the name of the underlying security that you sold (e.g., “Widgets Unlimited (WIG)”).
EIF:  Select “N/A.”

Value:  Report the value of the underlying security by selecting the appropriate category, which should be “None (or less than $1,001).”

Income Type:  Specify the type(s) of income if the total amount of income received during the reporting period exceeded $200.  In some cases, the underlying security may have produced dividends or interest before you sold it.  More often, you will have capital gains as a result of selling the underlying security.

Income Amount:  Select the category corresponding to the total amount of income received during the reporting period.

Reporting a Call Option That You Fully Exercised

If you fully exercised a call option, the option will no longer have a value of its own, but the underlying security that you purchased may have reportable value or income.  Report the underlying security if its value was more than $1,000 at the end of the reporting period or if more than $200 in income was received during the reporting period.

Description:  Provide the name of the underlying security that you purchased (e.g., “Growlster, Inc. (GRWL)”).

EIF:  Select “N/A.”

Value:  Report the value of the underlying security by selecting the appropriate category.

Income Type:  Specify the type(s) of income if the total amount of income received during the reporting period exceeded $200.  The exercise of the call option will not itself produce reportable capital gains; however, any subsequent sale of the purchased underlying security may produce capital gains.  In addition, the purchased underlying security may have generated reportable dividend or interest income.

Income Amount:  Select the category corresponding to the total amount of income received during the reporting period.

Reporting a Put or Call Option That You Resold

Report a put or call option that you resold if more than $200 in income was received during the reporting period.

Description:  Provide the name of the option, which should include the name of the underlying security and the type of option (e.g., “Widgets Unlimited (WIG), put option”).

EIF:  Select “N/A.”

Value:  Report the value of the option by selecting the appropriate category, which should be “None (or less than $1,001).”

Income Type:  Specify the type(s) of income if the total amount of income received during the reporting period exceeded $200.  Sales of options ordinarily produce capital gains.

Income Amount:  Select the category corresponding to the total amount of income received during the reporting period.

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