The Definitive Guide to stock options

When exercised, theres no instant taxable earnings, and if held for the needed period, any profit on sale is taxed as long-term cash gains rather then everyday money.

You should purchase or offer a certain amount of shares of the fundamental asset for the strike selling price on or prior to the expiration day. You're not obligated to trade the underlying asset in the event that You simply want click here to buy or provide in additional favorable current market ailments.