A Tax Question for Options Trader - Do you pay cap. gains for rolling options?

[cyber888]

Hi. So, I made a big gain on buying Netflix calls for Jan.2024. A few months ago, I bought Call options at a $250 strike price. I need to take some cash so was planning to sell those $250 Calls and roll it to $260 calls (also on the same stock, Netflix).

So question, do I pay capital gains tax on getting my profits for the $250 call ? Or it is a "Wash" since I put it on the same stock but move it to the $260 call ?

 

[Jerry1]

It’s not a wash. The 260 call is a different “stock” than the 250 call.

 

[njhowie]

You pay taxes on profit each time you sell. "Wash" only comes into play if you've sold, had a loss, then repurchased essentially the same within 30 days.

 

[cyber888]

Ok thanks guys!