SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Option Strategies
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Elroy who wrote (2438)1/24/2023 6:38:13 PM
From: TheNoBoB  Read Replies (1) of 2591
 
Re: Options and taxes

will the purchase on the same stock same stike March expiration puts cause the "wash sale" rule to prevent me from realizing the Feb capital loss?

AFAIK, the Treasury hasn't issued any rulings clarifying application of the wash sale rules to options. But since buying a call option triggers a wash sale from a stock loss, I'd think it's a safe bet that any other options position on that underlying would also trigger on an options loss.

The good thing about an options position is that it can't be forever. It'll eventually clear the wash sale one way or the other unless you do something like recognize the loss in a taxable account and trigger the wash sale in an IRA.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News