Interesting article here about how profits and losses are treated differently when trading or investing in certain ETF's. The ones mentioned are USO, UNG, DBA, GLD, SLV, IAU. It turns out that these are not treated as regular stock investments, but somehow taxed as collectables. In case the link doesn't work, the article is located at the Options Zone website and the article is intitled, "Guess What Uncle Sam Has Planned for Your Gold Investments." This may be a bit off topic, but perhaps some of you are writing calls against long term ETF holdings in taxable accounts.
http://www.optionszone.com/market-commentary/sector-reviews/2009/11/taxes-on-gold-investments.html?sid=SY2551&en=129451
BTW, thanks to all who responded to my question regarding calendar spreads. I do believe that the potential volatility of lower cost stocks will hurt the performance of calendar spreads more than those that are higher priced. It also seems that you have more flexability with option adjustments with the higher priced stocks.
RFH
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