I read an article that says options on index futures get the same tax preference as index futures, effectively capping gains at 23% tax rate. Is this still true? I have not found an article about it newer than 2008. I do quite a bit of options on RUT. If this tax preference is true, I am going to increase that component of my trading strategy.
Options on futures are section 1256 60/40 treatment. Broad-based indexes are futures, so options on them are futures too.
A little more info. But if for one reason or another you choose trader status you loose 60/40 status - since all p/l will be treated as ordinary income. -gariki