Tax Advantages
Our option writing strategies offer tax advantages over traditional short term stock trading. Options trading falls under Section 1256 Contracts and profits are reported on Form 6781.
As a result, 60% of gains are considered long term and 40% are considered short term, regardless of the holding period. This is a significant tax advantage over short term stock investments.
Please contact your tax professional for more information on this regulation.
Past performance is not necessarily indicative of future results. There is a risk of loss in trading futures and investors should make sure that only risk capital is used. Futures and options trading are not appropriate for all investors.