I assume despite the different expiration dates and strike prices, that these trades are considered “substantially identical”.
Yes, all of these trades are "substantially identical" regardless of expiration date or strike price.
Since 99% of all my trading are these options, am I to assume that ALL of my losses throughout the entire year are wash sales and therefore disallowed?
No, The losses in each loss transaction are added to the basis of the newest transaction. Then any gain in the new transaction is offset by the increased basis.
If I had 100 trades of SPY options last week, where I spent $15k total but lost $1k, …does this loss not count?
Again, The typical trade is closed when it is sold (Short Sale Excluded). When you sell you get the advantage of the increased basis, or you will carryover the loss.
Am I to be taxed on money I didn’t make because technically all these trades could be wash sales and any losses are disallowed??
Based on the timing of the transaction at the end of the year, you may incur taxes on derivatives you had sold at a loss.
Please help because I am very concerned about having to pay taxes on money I didn’t even make.
I understand your concern, but 2021 is gone, and you may have to pay the taxes.
A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar. It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days.
The wash-sale rule prevents taxpayers from deducting a capital loss on the sale against the capital gain. Wash Sale Rule
By example: If you initially purchase 100 shares of XYZ and sell at a loss. Then re-purchase 200 Shares of XYZ the Wash sale carryover applies to only the first 100 shares.
If you initially purchase 100 shares of XYZ and sell at a loss. Then re-purchase 50 Shares of XYZ the Wash sale carryover applies to the 50 shares, you get credit for the loss on the original 50
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