If you setup yourself up as a "trader", you are right that you don't have to worry the complication of tax. However, for a part time trader or newbie, if you haven't define and understand the strategy of taxation, I am sure you would get hit with a big tax bill. Because you could not deduct some of your losses. (wash sale). Let's say I trade a spread 5 days before the expiration: sell 240 put +1500 buy 230 put -1000 My net is +500 and they expire at the expiration day. On the expiration day, I repeat the same spread for next month. sell 240 put +1700 buy 230 put -1000 My net is +700 Again I let them expire. Would I be tax on (500 + 700 = 1200) or (1500+1700 =3200)??? The tax bill would be very different. I don't have MTM elected......