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Trading Strategies are NOT Taxed

Nov 13, 2017
1 min read


Contrary to popular opinion, trading strategies are not taxed, at least not as a strategy.


In other words, a Long call or a Short iron condor does not appear on your tax return. However, the options that comprise that strategy do.


For instance, a short iron condor involves TWO short calls and TWO long calls. Each of those instruments has an opening and a closing transaction.


Therefore, you will have FOUR line items on your Form 8949, the two long calls and the two short calls.



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