Decoding Cost Basis in Options Selling Confused about cost basis when selling options? This guide breaks down approaches for wheel strategy traders, from simple to sophisticated, with pros, cons & recommendations.
The Wheel Strategy and Taxes: What You Need to Know Before You Spin Wheel option premiums are taxed as ordinary income. Selling shares creates capital gains/losses, impacted by holding period and wash sale rules. Tax-loss harvesting and long-term holding can optimize taxes.
