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@ET180 What makes the rolling so much ITM puts in above example allowable tax loss? Is it just duration, and is it because puts were not assigned? Can you provide your reasoning?

This may not sound correct. Please take a scenario below and I'd be happy to know that it's not a wash sale! 1) Jan 2018 - Mary sold XYZ naked OTM May put Strike $100 for $5 2) May - Sock falls to $70. Mary rolls Oct put strike $100 for $1 3) Oct - the stock has fallen to $50, Mary rolls Feb 19...

Unfortunately, I do my own taxes and don't have a tax professional to speak to. ETFs are a relatively new phenomenon. I didn't read much about them But options have been around for a very long time. I don't remember exact revenue codes, but there seems to be a more clear definition of...

I have been reading about references posted by @MoreLeverage on this thread. It seems deep ITM options will be considered substantially similar to owning the stock. And should trigger the wash sale rule. So I am not sure if you were allowed to take loss on your first sale of stock. Ideally...

Yes, you clearly were out of line in calling a simple discussion on taxes as" "you created your own problems".... Accountants and tax preparers must disclose their profession when they discourage others from discussing tax-related issues that affect trading. Yes, I went back and read a few...

Why are you suddenly bullying and harassing on this thread? Don't start personal attacks and do fear mongering

@ajacobson Are you kidding me?? Why would be a discussion a suicide?? Are you an accountant or tax preparer? Please disclose your profession for fear mongering. We are discussing how to interpret the IRS codes for active traders. I am an active trader and feel sick of paying huge taxes for...

Thanks for suggesting to use call options instead of naked put options. Can call option be very out of money, e.g. buying only 60 day call option for $0.1 and then let it expire? Will that also trigger wash sale? So situation becomes: Sold XYZ stock @100 for $30 loss. buy $140 call option...

I have the following transactions that got executed on the same day but one after another at different times. Sold XYZ stock @100 for $30 loss. Sold ITM put on XYZ for $10. Bought XYZ stock $100. Covered put on XYZ for $10.5. Will final cost basis for XYZ stock held long in my account be $100...