Tax Advantages
Our option writing and futures trading strategies offer tax advantages over traditional short term stock trading. Option and futures trading falls under Section 1256 Contracts and profits are reported on Form 6781.
As a result, 60% of gains are considered long term and 40% are considered short term, regardless of the holding period. This is a significant tax advantage over short term stock investments.
Please contact your tax professional for more information on this regulation.
Past performance is not necessarily indicative of future results. There is a risk of loss in trading futures and investors should make sure that only risk capital is used. Futures and options trading are not appropriate for all investors.