Mar
3
jackiesymon asked:
If I use an option straddle strategy, and I bring in $100K over the course of the year but I lose $90K on the other side of the straddle, do I pay taxes on the $100K, or only on the $10K that I actually came away with? If I have to pay tax on the $100K, am I only allowed to deduct the max allowed loss of $3K?
If I use an option straddle strategy, and I bring in $100K over the course of the year but I lose $90K on the other side of the straddle, do I pay taxes on the $100K, or only on the $10K that I actually came away with? If I have to pay tax on the $100K, am I only allowed to deduct the max allowed loss of $3K?
Thanks!