When exercised, theres no speedy taxable income, and when held with the demanded interval, any financial gain on sale is taxed as very long-expression funds gains in lieu of common cash flow.
You'll find 2 main sorts of standard options contracts: calls and more info puts. The primary difference is exactly what each one allows you or A different social gathering to complete. Call options delivers the best of the option customer to buy the fundamental asset and obligates the choice seller to offer the underlying asset at a selected price tag (determined by the strike rate) with the expiration date.