wash sale rule

Discussion in 'Professional Trading' started by 87835, Mar 6, 2013.

  1. 87835


    ?,, I'v started tradeing "at the money" stock options and Im gradualy building up a surpriseingly large amount of money? Although on one hand Im pleased by this, on the other hand Im a little worried about what will happen next jan. 1. I'v read a book that breafly describes the "wash sale rule" so I know what it is although I still do not feel like I have a solid grasp of all its implications. I know of one person who makes several hundred trades in the course of a year and makes no effort to keep track of the 30 day time frame,or what should be subtracted or added or in what amount, or the ytd p/l for a security he is tradeing repeatedly. At the end of the year this person takes his acount to zero (sells everything) for tax reasons. Is this a typical aproach or method for active traders?