Sharing a quick reminder about wash sales since I've seen some folks here get in trouble! Wash sale losses cannot be deducted from your net gains, so it's important to avoid these violations.

Here's how to avoid them:
Don't rebuy a stock or option within 30 days of selling it at a loss.

So that means 30 days before or after selling a position at a loss, you can't have any buys.

If you're still confused or want additional clarification, happy to answer in more detail!
Pendulum Investments's avatar
Its vital to consider how taxes will affect your returns for any given trade. Thank you for the reminder.
ParrotStock's avatar
A great way to avoid this is to sell ITM puts. just make sure expiration is past the 30 day rule. Tax harvest, collect premium on options, & get your shares back at a lower basis. win-win.... win

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