Jester,

Yes, your logical is pretty impeccable - and I think it would replicate how the IRS would see this 'event'. Still, as you imply, the 'real deal' in terms of taxability cannot really be known until after the event - which might send some people scurrying to rebalance tax loss selling - if that info is made available before year's end, which is also clear as mud.  Dance with it - we're not calling the tune.

I am curious about this: in the 'blackout period' in which ALU get 'called away' and replaced with NOK - if one thinks there's an opportunity in buying more on a given day, I take it that one should just buy NOK, yes? If that 'blackout' ends on the 22nd, there's very little 'trading time' as it encompasses a weekend, and it probably isn't an issue - just curious about if that's the deal. That is, really starting tomorrow, buying NOK is the only way to play the stock.

And I am tempted to buy some more INFN, as I can't see any reason for its fall, except that I have a position that is large enough for me already. Ironically (for me), I have a profit in ALU, and paper losses of some significance on INFN and CIEN, neither of which I want to sell for tax losses, given the beta unpredictability. So I'll just deal with it.