An investor owns several shares (like 2 or 3) of Berkshire Hathaway Class A shares. He sells 5 call contracts on class B shares and then buys them back at a loss. For purposes of taxes, were the calls covered? Also, for tax purposes, does this constitute a straddle?
The reason I am asking is, I am wondering if the realized loss on the options can be taken when the calls are bought back. If you believe that it is not a qualified covered call but it is a straddle then I claim you cannot take the loss at the time you buy back the calls.
I live in the United States.