Sell puts if you think it is going up or sideways. If you are wrong sell calls until called away. Repeat. It is a bullish strategy. See www.Reddit.com/r/thetagang
Where are they registered? Can you take money out of the account? Alternative try www.interactivebrokers.com they are regulated with sec and Cftc and you can take money out of the account.
1. As you have earned income your options gains should be capital gains which have a separate allowance and lower tax rate.
2. No.
3. Dispute this as it should be capital gains.