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