SPX Options Going Electronic in Q1!

Quote from uptickk:

Yes sir
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Are you sure about this? I suspect otherwise.

Oh, perhaps you're right. I do know that the cash-settled options currently listed on the CBOE (like VIX monthly options) are legally securities and not futures options, so if I trade them... my commodity pool comes under SEC supervision. On the other hand, the instruments listed on the CFE (including VIX weeklies) which are settled into physical futures are treated differently.

But perhaps from a tax point of view, these are still section 1256?
 
Quote from heech:

Are you sure about this? I suspect otherwise.

Oh, perhaps you're right. I do know that the cash-settled options currently listed on the CBOE (like VIX monthly options) are legally securities and not futures options, so if I trade them... my commodity pool comes under SEC supervision. On the other hand, the instruments listed on the CFE (including VIX weeklies) which are settled into physical futures are treated differently.

But perhaps from a tax point of view, these are still section 1256?
More...

Interetsing point.

Could we get some definitive clarification from an enlightened forum member?
 
Quote from CPTrader:

Interetsing point.

Could we get some definitive clarification from an enlightened forum member?
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SPX is a non-equity option. Tax treatment of same is in IRS pub 550 on p 40. Just call your accountant.
 
Quote from sonoma:

SPX is a non-equity option. Tax treatment of same is in IRS pub 550 on p 40. Just call your accountant.
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Im not an accountant but just to clarify this means it is a 1256 contract. Thanks for the link Sonoma
 
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