wondering if this is consider a wash sale- I sold some calls on stock ITM and some of it got assigned at a loss. If i was to buy back the other contracts even at a profit/loss, will that make the stocks that i was assigned to sell a wash sale?

I also assuming the credit that I got from selling those calls get tax too as capital gain- if i was to close the rest of the contracts that did not get assign

I think if i dont buy to close the 14 contracts and let them auto assign- there won't be a wash sale. I dont want to sell. was hoping to cover those short contracts- but I didnt expect someone to excerise me to sell

if i buy to close the remaining 14 contracts to open, will i have to pay for the taxes I made on prem gain from selling those 6 contracts- and i cant use the write off for taking the loss on 600 shares?

1 Answer 1


A wash sale occurs if you acquire a substantially identical security within 30 days (before or after) after realizing a loss. The stock and the calls are not substantially identical, nor did you acquire replacement shares so there is no wash sale here, regardless of whether you buy-to-close the remaining short calls or let them auto exercise.

I am not a tax advisor so consult with your accountant.

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