05-04-2021, 06:44 PM
You buy and sell options all the time. The timing of the options purchase is a huge factor in the value of an option, even over time periods as short as the 61-day window that can trigger the wash-sale rule. I don't buy weeklies, but I'm happy to sell them. Theta usually works in the seller's favor on a weekly. Buying weeklies is wallstreetbets craziness.
The value of a stock can fluctuate over a 61-day period, but the wash-sale rule recognizes that you bought and sold the same asset. I can hold the T I purchased as long as I want to in the hopes that it will do what most other stocks do and go up over time, making me a profit (maybe not with T, LOL). That can't be said of an option, which comes with a hard expiration date and a binary outcome on expiry.
The value of a stock can fluctuate over a 61-day period, but the wash-sale rule recognizes that you bought and sold the same asset. I can hold the T I purchased as long as I want to in the hopes that it will do what most other stocks do and go up over time, making me a profit (maybe not with T, LOL). That can't be said of an option, which comes with a hard expiration date and a binary outcome on expiry.