Tax Harvesting

Discussion in 'Options' started by qazmax, Jun 7, 2006.

  1. qazmax


    Anyone have any good Tax Harvesting tips for options?

    I read one idea for coverting your long-term losses on a stock position to short-term losses.

    1. Sell your long-stock
    2. Buy a deep ITM call option (triggers the wash sale rule)
    3. When the call is exercised a new holding period is created
    4. When this stock is sold the loss is realized as short-term

  2. cnms2


    It probably doesn't work, but I suggest to ask for free advice from professionals on's message board.

    If you substitute your stock position with a substantially equivalent options positions, you shouldn't be able to convert the holding period to your advantage.