VIX options: Sec. 1256?

Discussion in 'Taxes and Accounting' started by SoCalOptionsWriter, Feb 26, 2023.

  1. I sense they are, but things often get funky with the VIX, as I believe the options are covered by a different legal entity than the underlying futures.
     
  2. gkishot

    gkishot

    Cash settled options are covered by sect 1256.
     
  3. Cool. Tks.
     
  4. I believe all derivatives at this point fall under 1256 rule, just the amount of traders in it alone has sparked the IRS creativity in applying said rule