How are call and put options taxed when exercised?

by ajstarks

Let’s say I buy 100 CALL options and 100 PUT options on Apple stock at a strike price of (say) $ 120. If I exercise the call options in (say) 1 month, what are the tax implications?

Answer by WealthBuilder
Taxes are due when you close out the position. If you had a gain or loss on your put or call. If an option ends out of the money and unexercised, then you have closed the option position by default and any money you paid is a capital loss or any money your received from writing the option is profit.

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Image by joe holmes

From articles, to apple computers stock price, to ping pong matches, to to appearances, the money he gave to bubba, etc, I wonder if someone did an estimated calculation.

Answer by The Aisle Seat
$ 1,000,000

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