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I have a question regarding tax losses of stock options. If I purchase a put and do not exercise it, is the cost I paid for the put considered a tax loss?
example: I own 100 shares of XYZ and I want to protect my position, so I purchase a put. The stock goes up, so I do not need to exercise the put option. The put expires worthless. I do not sell the stock. Is the cost I paid for the put considered an investment loss?
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‎December 27, 2023
6:23 AM