I did some tax loss harvesting last week and am hoping I didn't incur a wash sale this week. Any thoughts would be greatly appreciated.
I sold a portion of CELG held long term for a significant loss in late December for $58/share. However, I had previously sold significantly out of the money covered calls at $80 on a portion of my remaining position. Since the new year, a merger was announced and those calls went in the money. As the merger value of the CELG shares is close to 100 and CELG was trading only at 83 today, I thought it made sense to stay long CELG and buy to close those covered calls for a significant loss. As I was closing the covered call position and taking a further loss, I don't see it as an issue, although now I'm wondering if one might argue that I effectively repurchased shares by doing this as I was able to stay long. However, at no time did I go long calls or actually repurchase stock.
To further complicate things, I had a preexisting CELG short 80 put position that now looks likely to expire out of the money (I had originally sold the covered calls to offset losses from the short puts). Finally, I sold a new out of the money covered call position for Jan 18 at the 90 strike today (rolled out the calls). Will the expiration of the short put (opened more than 30 days before the late December commons stock sale in question) or the sale/expiration of the short covered calls at 90 have any further implications?