Covered Call Wash Rule?

I recently traded an ITM covered Call spread on QQQQ for a small premium (B:100 QQQQ at 42, S:1 CC at 41 the theta premium is my profit/ I then repeated the next month). It appears I have been levied a wash rule sale, even though I earned a profit. What is the strategy that I may liquidate prior to year end and get around the wash rule. Thank youCovered Call Wash Rule?
You did not have a wash sale. The original trade resulted in a profit instead of a loss.





When you are assigned on a call you have written, your sale price is the total received from the sale of the option and the sale of the stock. So, for example, if you sold the call options for $1.50 your Schedule D entry would show that you bought QQQQ for $4,200 and you sold it for $4,250.





See the table on page 57 of IRS Publication 550.





http://www.irs.gov/pub/irs-pdf/p550.pdfCovered Call Wash Rule?
You must be totally out of the instrument in question. The IRS will look at the purchase/sale matching of each instrument, not the profitability of the strategy as a whole. Remember that the wash period is 61 days, starting 30 days prior to the purchase. So, if you sold it and then bought it back, it could be matched with a transaction that's not the real matching transaction in your strategy.