Holding period starts over upon the exercise of an option. But, as you stated, if you sell the long option, you'll get long-term capital gain (you then cannot defer the gain, as with an option exercise).
RIA Explanation
ô22,359.38. Property acquired by exercise of option.
The holding period of property obtained through the exercise of an option begins the day after the option was exercised. 22
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22. Helvering v. San Joaquin Fruit & Investment Co, (1936, S Ct) 17 AFTR 470, 297 US 496, 80 L Ed 824, 36-1 USTC ô9144, reh den(1936, S Ct) 17 AFTR 483, 297 US 728, 80 L Ed 1011; Frederick, Charles v. U.S., (1968, DC MI) 21 AFTR 2d 603, 68-1 USTC ô9195.
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