@bigbunny101... and to follow-up on the response from @Mike9241, regarding question 1 - No, it appears the wash sale does apply to your option purchase. Options to acquire or options to sell stock are considered securities. That means that if an option is sold at a loss and then replaced, it is included in the wash sale rule.
Regarding question 2 - please clarify what you mean.
Regarding question 3 - generally, brokerage firms follow the FIFO rule which is first in, first out. Thus, as stock or options are sold, any losses from same will match to the initial purchase date. In other words, you cannot chose to decide to match certain sales of options or stock to certain purchases of options or stock. However, this is the general rule and you may be able to make other adjustments with your brokerage firm where you can select which sales of stock or options you want to match to which purchases.
As a way of background, the Wash-Sale rule was created by the IRS to disallow the loss deduction from the sale of securities if repurchased by a seller or spouse within the Wash-Sale period. The Wash-Sale period is defined as 30 days before and 30 days after the sale date, totaling 61 days (including the sale date). Thus, when you have a Wash-Sale the following applies:
- you are not allowed to claim the loss deduction
- an adjustment must be made by adding the loss to the cost basis of security repurchased
- the holding period of repurchased securities includes that of securities you sold
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
