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Financial Planning / Tax Strategies
|Subject: substantially identical option contracts ?||Date: 11/21/2012 4:54 PM|
|Author: dbg100||Number: 116954 of 124765|
I was wondering whether anyone knows what constitutes substantially identical option contracts - this is in the context of wash sales.
The specific scenario is:
1. Sold an October '12 205 Put on company XYZ and closed the position at loss
2. Sold a January '13 200 Put on company XYZ within the 31 day window.
Is a January '13 200 Put considered to be substantially identical to a November '12 205 Put ?
My assumption is they are, they have almost the same risk/reward characteristics, but I haven't found a definitive rule anywhere.
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