I am not sure if wash sale disallowed rule applied to the following tradings.
Assume I trade weekly options on option expiration week. And I lost three times in three consecutive weeks. Say I bought SOFI $27.50 Dec 12 call on Dec 8 and sold on Dec 10 for the loss A. Then bought Dec 19 call same strike price on Dec 15 and sold on Dec 17 for the loss B. Then bought Dec 26 call same strike price on Dec 22 and sold on Dec 23 for loss C. Then never buy SOFI calls again. Can I claim loss A, B and C on tax year 2025? Basically the question is if Dec 10 calls, Dec 17 calls and Dec 26 calls (all strike price at $27.50) for the same stock are considered the same or a "substantially identical" security, so the loss is disallowed since I trade it within 30 days window and lost three times?
Need clarification on option trading and wash sale rule.
byu/ArQ7777 inoptions
Posted by ArQ7777
1 Comment
This is a bit of a gray area, and depends on your brokerage. Some are conservative (Schwab, Fidelity, Merrill) and would likely consider your 3 transactions as substantially identical for the sake of over-reporting wash sales.
You would need to manually adjust in your tax return, meaning you’ll want to keep detailed records showing why the 3 were not – i.e., different expiration.