I have a WASH SALE Question for some tax experts here. (this is for future reference) via /r/wallstreetbets #stocks #wallstreetbets #investing


I have a WASH SALE Question for some tax experts here. (this is for future reference)

IF I am Long on ABC with Stock and Calls, and have Puts for protection against price retardation, but still I am taking a beating all year and losing $100k by day trading those Long positions.

THEN at the end of the year I want to harvest my $500k losses and against my $400k gains so I sell all of my Long Stock and Calls and Puts and not trade for 30 days.

BUT I just dont want to be out of my positions for a month to harvest tax loss and then the stock goes way up and I basically bought high – sold low.

CAN I just sell DEEP in-the-money PUT options to go long on ABC and also avoid a wash sale, since I’m selling Puts to close and then Selling puts to open on ABC. I understand it might not be as leveraged and more risky, but in Essence I just want to Harvest tax losses while still being long ABC?

I was just watching this video and it seemed like this would work. https://www.youtube.com/watch?v=WxMkIZm4A5I So now I am asking your opinion, retarbo tax persons of WSB.

Submitted February 26, 2022 at 11:46PM by ultrasharpie
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