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A. The 30K of "unrealized gains" will not be subject to tax until you close your trade. When you close the trade, the gains will be taxed at the short term rate of up to 33% (depending on your total income). The 30K will also be added to income and you will pay taxes on ordinary income. This...

Thanks. I will do some homework and learn more about implied volatility.

I purchased a few XLF Aug $16 call options yesterday. This is the first time I purchased options on an ETF. With 4 weeks before expiration I did not think theta would be a issue yet. Yet with the XLF up .74% today, my postion is down 76%. I don't understand how this happened. Can someone...