If you buy an option and sell it over a year later, it would be a long-term gain (or loss). If you are buying and selling a series of options each stands on its own. You cannot extend the holding period unless you hold the exact, same option for over a year.
You are totally messed here.
1) Wash sales disallow losses, not defer gains. A wash sale is always bad for you.
2) Equity options are 1256 contracts in general so there is none of this bs about holding period.
Suppose I purchase option contracts with a strike price of $16 and sell them before the end of the year -- they qualify as short-term gains. What happens if I sale those contracts and buy option contracts in the same company but at a different strike price. Do I need to include the short-term gains on my tax return or is this considered a wash sale. Furthermore, if I end up holding the contracts for more than a year (after sale and buying similar contracts at a different expiration/strike price) does it qualify as long-term gain instead of short-term?
Thanks in advance
