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One question I haven't seen answered.

I know that wash sale rules apply both to stock & to options. However, what about the following scenario;

I own 100 shares of XYZ purchased 6 months ago which is 50% down. I want to sell & take the tax loss for a capital gains offset. However, I like the stock & think it will start increasing slowly. Rather than waiting 30 days & then buying back I'd like to use an option to BUY an APR 40 CALL immediately. That way I can just get back in at todays depressed price anytime from 30 days from the sell date of my actual stock & April.

The question is therefore whether buying an option within 30 days of selling actual stock counts under the wash sale rules or are stock trades & option trades treated separately ? Obviously I will have to wait 30 days from the stock sell date before I could exercise the option, right ?


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