Stugi
Returning Member

Investors & landlords

C on the unknown, but as I stated earlier, I do not have other trades for the time period on any account +/- 30 days or anywhere else. The brokerage told me it was because the put options buy to open and then sold to close was executed within 30 days. Here is what I was told by their part:

 

"A wash sale occurs when you:

sell or trade securities at a loss and

within 30 days before or after the sale, buy a substantially similar security, including acquiring a contract or option to buy substantially identical securities.

Since the contracts were opened within 30 days before the date they were closed for a loss, the transaction is categorized as a wash sale."

 

Confusing as I didn't buy any new options after this, so I have nothing to add the cost basis to. Nothing new at all. By the way it is worded, makes it seem that If I buy 4 put options of X to open and then sell 4 contracts of X to close at a loss, then its automatically a wash sale because its within 30 days, even though there is no record of any identical or similar security being bought anywhere else.