I have some stock options expiring in January 2006 that are completely out of the money and will most likely expire worthless. I have capital gains in 2005 that I would like to offset against these options. I'm told that if there is no market "bid" for the options then its not possible to close my postion prior to year end to take advantage of the loss. Do you know of any way to sell these options in 2005 or close my position to liquid prior to year end 2005 Thank you for your help in this matter.

Zip Code: petejazz2005@hotmail.com

In my experience with worthless securities, I have found that the financial institution has been willing to buy my worthless securities for $1 to clear them off my account, and allow me to take a loss. Unfortunately, I've had a few stocks tank in my day.

I would recommend contacting your broker or the customer service department from the financial institution where these options are being held. If they aren't willing to give you a buck for your options, maybe they have another solution for you.

Zip Code: aschwartz@mdtaxes.com