Options Taxation
Options taxation is a tricky area for exam candidates, especially when dealing with expiration, exercise, and closing positions. This video breaks down exactly how gains and losses are realized for both buyers and sellers—so there’s no confusion on test day.
You’ll learn:
Tax treatment for exercised, expired, and closed-out options
How long-term vs. short-term gains apply to calls and puts
What happens to premiums in different closing scenarios
Special considerations for option writers (sellers)
IRS rules that frequently appear in exam questions
📘 Related Exams: Series 7 and Series 9
🧠 Skill Level: Intermediate
💰 Topics Covered: Capital gains/losses, expiration vs. exercise, IRS rules, taxation of options buyers and sellers
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