Tag: FinancialRegulation

Introduction: For active options traders, understanding the tax implications tied to various strategies is as crucial as forecasting market movements. The strike price of an option—where the tax journey begins—can significantly influence the tax consequences of a trade. This article sheds light on how strike price selection affects taxation and what traders should be mindful of when planning their options trading strategies. What is a Strike Price? The strike price is the fixed price at which an option buyer has the right to buy (call option) or sell (put option) the underlying...