Index Options & Taxes

Discussion in 'Options' started by Bluewaters, Sep 11, 2008.

  1. Hi,

    I apologize in advance if this is not the correct forum, however I have a couple of questions about taxes and options.

    My understanding is that gains and losses on options of broad based Indexes are taxed as 40% short term and 60% long term, regardless of how long the position is held.

    Would anyone know if options on ETFs of Indexes are treated similarly? e.g. Would QQQQ options be treated like Nasdaq 100 options, or SPY for SP-500 etc.?

    I guess my second question is - would the Nasdaq 100 be considered a broad based index? Alternatively, I guess - How broad is a broad based index?

    Thanks