Does this work for a qualified covered call? (opens in new tab)

Imagine an investor has owned the XYZ company (not a real company) for a long time with a low cost basis. He then writes an out of the money qualified call option against it. The stock continues to go up. He does not want to pay tax on the capital gain at this time. He could buy back the call at a loss but the loss would be a long term capital loss. He would like to generate a short term capital loss. As a result, he does the following. He buys additional shares of the XYZ stock and then sell...