Examine This Report on stock options

When exercised, theres no quick taxable revenue, and if held for the required period, any profit on sale is taxed as long-time period cash gains in lieu of standard profits.

A longer expiration can be helpful click here since the choice can keep time value, regardless of whether the stock trades below the strike selling price. An options time price decays as expiration approaches, and options customers dont want to watch their obtained options drop in worth, most likely expiring worthless When the stock finishes under the strike price.