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I sold 250 shares of a stock at a loss of (-1,000). 2 weeks later bought a single put contract (100 shares) n the same stock. If I sell the put option for profit a few days later, is this a partial wash sale? If so, how do I calculate it? (IRS)

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A wash sale occurs when you realize a loss on a security and within 30 days before or after the closing date and you:

  • (1) Buy substantially identical stock or securities

  • (2) Acquire substantially identical stock or securities in a fully taxable trade

  • (3) Acquire a contract or option to buy substantially identical stock or securities

(3) would be applicable if you had purchased a call. A put is a bet on price decline in the underlying whereas long the underlying is a bet on price increase. They are not substantially identical so there is no wash sale potential.

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