Options Trading

Calculating capital gains from options trading adds additional complexity when filing your taxes.

A stock option is a securities contract that conveys to its owner the right, but not the obligation, to buy or sell a particular stock at a specified price on or before a given date. This right is granted by the seller of the option in return for the amount paid (premium) by the buyer.

Any gains or losses resulting from trading equity options are treated as capital gains or losses and are reported on IRS Schedule D.

Learn more about Options:

Wash Sales between Stocks and Options

Option Sales

Option Expirations

Selling Puts Creates a Tax Prep Nightmare

Options Exercises and Stock Assignments

Broad Based Index Options

Broker 1099

^{Please note: This information is provided only as a general guide and is not to be taken as official IRS instructions. Armen Computing Ltd. makes no investment recommendations and does not provide financial, tax or legal advice. Please consult your tax advisor or accountant to discuss your specific situation. You are solely responsible for your investment and tax reporting decisions, and you should carefully evaluate all information delivered to you by Armen Computing Ltd. and TradeLog. Not all information may be appropriate for all investors.}