• Will this case trigger the whitewash rule for cap gain loss?

    From alex@21:1/5 to All on Fri Nov 19 11:09:25 2021
    This is a question ONLY about applicability of the whitewash rule, not about option trading strategies.
    I sold ROKU option puts at $260, they are assigned today, the now price is $238.
    That means on Monday I bought 1000 shares of Roku at $260, while the market price is $238. If I sell them immediately I will book for tax purpose a short cap loss of $22,000. If I want to buy ROKU back at less than $260 I will need to wait 30+ day,
    or the whitewash rule triggers.

    An alternative scenario I am thinking is to still sell now ROKU for the loss of $22,000 and also sell an option put with strike close to $238 and expiration longer than 30 days. That means, I collect now the premium from selling the put, and after 30+
    days, ROKU is still at or below $238 I will buy back (assigned) the 1000 ROKU shares. Will this strategy trigger a whitewash rule?

    Appreciate the help, Alex

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)