I know I'm not the only person here to have heard about this in the last year or so. I'd like to hear other peoples take on this. The recient Motley Fools article says the feds could limit the dividend to no more than 30% of earnings if NYCB grows beyond 50 billion in assets. I like the fat dividend!
A lot of what I trade is in IRA accounts so I don't worry about taxes at all for those accounts. As for a taxable account I always start off an options position by selling not buying the option. As for puts if I buy the option back or it expires worthless without purchasing the stock I do pay taxes on the profit. If it expires worthless (options always expire worthless) and I end up purchasing the stock the profit is subtracted from the purchase price so I don't pay any taxes on the option until I sell the stock for a profit, sometimes turning a short term option gain into a long term gain.
As for calls I rarely sell a call in the money but that makes no difference. If a covered call expires worthless without trading the stock then I do pay taxes on the profit. If I sell the stock because of the covered call then the profit from the call is added to the sell price of the stock sometimes turning a short term gain of the option into a long term gain depending of how long I have owned the stock or no gain at all if the stock is sold at a loss. (OUCH)
For covered calls I like to sell fairly long term (about 9 months) for the last couple of years any covered call I've sold that has been in the money on the X dividend date has traded on the x dividend date instead of waiting for the option to expire. So getting a larger premium for selling a longer term covered call and getting traded out of it early is part of My option trading strategy.