• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 9. Stock Selection and the Optio... > The Importance of Taxes in the Optio...

The Importance of Taxes in the Option Equation

Even when you have defined clear guidelines for using options in your portfolio, you may yet face complications due to the tax rules, one of the most troubling aspects of including options as a strategy. While everyone hopes for tax simplification, history shows that reforms in the federal tax system have only made matters more complex.

A seemingly innocent strategy, such as a short straddle, can cause complex tax problems. The least of these may be deferral of losses to a future period when a second leg of a straddle closes.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint