Covering Yourself When Selling Calls on the QQQ

I bought 1,000 shares of the Nasdaq 100 tracking stock (QQQ Quote) for $95. If I sell a covered call at $90 for $7, how do I report this? What happens if the option is exercised?

-- Russ Geissbuhler

Russ,

There is no definitive answer to your question, because the Internal Revenue Service cannot decide how to treat options on broad-based indices, like the QQQ or the Standard & Poor's Depositary Receipts (Spiders). ...