Hi Larry,

How are option premiums taxed? Are premiums paid/received just taxed as income, or are considered capital gains/losses? Thanks for your help.

Steve

Steve,

Here is an article that explains it all. On a related note, I haven't seen the details of the new tax legislation but I understand that there is a tax advantage to buying stock futures and shorting the corresponding stock. But I don't think that there is anything in the legislation that affects options - at least I haven't heard that there is.

Larry

Interesting, thank you very much!

Steve

P.S. I love your report; you are doing a great job, and helping to spread financial literacy to those who seek it out.