Writing options for tax harvesting?

Discussion in 'Options' started by noob_trad3r, Feb 9, 2009.

  1. I have calls for SPY that will expire and I will get assigned (3% loss, would have been much worse without the calls as a hedge)

    Now when I get assigned and have the cash, if I write OTM puts for SPY as long as the option expires over 30 days (ie lets say 34 days etc..)

    I get put, this will not count as a wash sale right?

    because I wrote a put contract I did not buy SPY again, I just collected a premium correct?

    I would like to take advantage and offset some of my gains.
     
  2. spindr0

    spindr0

    FWIW, one chain for this would be a lot easier...

    It's a wash sale
     
  3. I tried to delete this thread but it would not. .
     
  4. Spin,

    Are you sure that's a wash sale?

    He didn't re-buy the stock within 30 days and the Put was OTM and clearly not "substantially identical".

    Don
     
  5. spindr0

    spindr0

    At this pont, I have no clue. The OP started 2 chains and it became clear that it was unclear what his positions and execution dates were.