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[The taxpayer's] primary purpose in engaging in options
transactions, spread transactions, butterflies, and
specifically the transactions in issue, was consistent
with and part of his overall portfolio strategy to make
a profit. Thus, the transactions had sufficient
economic substance to be recognized for tax purposes.
See Yosha v. Commissioner, 861 F.2d [494 (7th Cir.
1988), affg. Glass v. Commissioner, 87 T.C. 1087
(1986)] at 499. [Laureys v. Commissioner, supra at
134-133.]
As a result, we disagreed with the Ressers' assertion that the
facts of their case were similar to those of Laureys and
distinguished Laureys as follows:
First, we note that the taxpayer in Laureys relied
almost exclusively on his trading activities in stock
options as his sole source of income. The taxpayer
received practically no other income. In contrast,
petitioners had wages of approximately $250,000 as well
as consulting income in excess of $40,000.
Petitioners' need for offsetting tax losses to reduce a
substantial amount of taxable income is apparent.
Moreover, with other sources of income, it is evident
that petitioners were not forced to rely on the TDY
trading gains to earn a living.
The taxpayer in Laureys engaged in market making
for his own account on a full-time basis. In the
instant case, * * * [Mr. Resser] entered into just 9
TDY spread transactions on only 6 days for his own
account during the year (excluding the spread closed
out in February 1982). * * * [Mr. Resser] spent the
majority of his time as a risk analyst, consultant, and
trading for the Bichon Venture Partnership/AMR account.
The taxpayer in Laureys traded in at least eight
different option classes whereas * * * [Mr. Resser]
traded only TDY stock options in the QRF account. In
Laureys, the taxpayer attempted to vary his strategy
behind the trades in his account. He was sometimes
bullish, sometimes bearish, and sometimes attempting to
capture a dividend. * * * [Mr. Resser's] testimony is
that he maintained a bearish strategy with respect to
the TDY trades. * * * [Resser v. Commissioner, T.C.
Memo. 1991-423.]
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