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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120829  
Subject: Re: WASH sale on option loss ? Date: 11/23/2013 6:45 PM
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I sold an 10 options on MU for strike price of 10$ for Jan 14 date.
The option is in 10K loss now and i want to buy it back to offset taxes as a loss.

My question is
1) If i buy back the option and immediaetly sell another option for the same secruity but at a future date and price. (Like 17$ for March 14). Will my loss be considered as a WASH ?


No. An option at a different expiration date and/or strike price has different risks and so is not substantially identical. However, your $10K loss will be treated as a capital loss, available to offset any capital gains. Any net loss will only be deductible up to $3000 this year. Remaining losses will be carried forward to 2014.

Ira
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