05-04-2021, 04:34 PM
(05-04-2021, 04:30 PM)Otter Wrote: I would take it one step further, too, and say there is a valid argument to be made that options with identical strikes/expiries, but purchased at different times, are not "substantially identical." Unlike stocks, options are time-limited, and value decay due to the running of time (Theta) is a very real driver of option value.Oh you are really reaching now. Judge doesn't want to hear about no theta nonsense lol. An AUG strike 50 is an AUG strike 50. I'd pay to watch you argue that though.
The risk profile of an option with two months on the clock is very different from an option with 30 days left. It is quite possible, in the context of options, to purchase an option within the wash sale period that is materially different from the "same" option when it was sold. Stocks don't really have that theta time decay component.
I suspect these complexities are one of the reasons the IRS hasn't published any rules.
