Noel, re "My understanding was that all options are treated as short-term gains."
That is incorrect. For example, from irs.gov, page 54,
"If you sell the call or the put before you exercise it, the difference between its cost and the amount you receive for it, is either a long-term or short-term capital gain or loss, depending on how long you held it."
AND
"If the options expires, its cost is either a long-term or short-term capital loss, depending on your holding period, which ends on the expiration date."
AND
"If a call you write is exercised and you sell the underlying stock, increase your amount realized on the sale of the stock by the amount you received for the call when figuring your gain or loss. The gain or loss is long term or short term depending on your holding period of the stock."
Regards, Ron
[edit: I see James Bowers posted the same quote and source, but I'll leave this post stand anyway.] |
