What are the tax implications of options trading?
October 4th, 2010
If I use an option straddle strategy, and I bring in 0K over the course of the year but I lose K on the other side of the straddle, do I pay taxes on the 0K, or only on the K that I actually came away with? If I have to pay tax on the 0K, am I only allowed to deduct the max allowed loss of K?
Thanks!