Thank you for the detailed explanation. At this point, I am not a registered trader or anything as I have other professions, but I will keep that in mind as it may progress that way. I did almost 30 day trading in last two days and learned that tax bill could hit back later for.
May I ask you one follow up question?
So for the above example, let's just say I bought the same security, PYPL 08/20/21 C at 1200$, and today, I sell at loss at 600$. Then, for all these trades, the total net profit is -3.7 (2.3-600). In this case, do I owe taxes? I am wondering because the wash sale rules may not allow me to deduct the loss (in which case I would still owe taxes on 2.3$ net profits), or I am confused with cost basis.
Thank you so much
