Case Studies · Tax Offset
One account. 336 days. A real tax outcome.
A real account, 336 days, built around a single concentrated position, where net option losses from rolling offset short term equity income elsewhere in the account.
Tax information is not tax advice. The figures below are historical and account specific. Consult a qualified tax professional before drawing conclusions about your own situation.
The story in three lines
Winning Premiums
$32,646
233 trades
Roll Costs
−$40,421
Same 233 trade set
Net Shifted
−$7,775
Offsets ST equity income
Tax outcome
ST Income Without Overlay
$14,894
→
ST Income With Overlay
$7,119
$7,775 shifted
=
Est. Tax Saved, 24% Bracket
$1,866
Illustrative only
Which positions generated the tax offset
Roll loss dollars per premium dollar collected, by symbol.
IAU
$6.48
AVGO
$1.62
SPY
$1.28
QCOM
$0.75
PLTR
$0.42
Regulatory disclosures, including one confirmed wash sale event+
Confirmed wash sale event, TSLA.
A $2,185 loss on TSLA options activity dated August 4, 2025 was disallowed under wash sale rules and is not included in the deductible loss figures above.
Tax information is not tax advice.
Consult a qualified tax professional regarding your specific situation.
Options trading risk.
Options involve significant risk, are not suitable for all investors, and can result in the loss of the entire investment in the option.
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