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Does the Holding Period Matter for Options on Section 1256 Contracts?

No, options on Section 1256 contracts are also Section 1256 contracts, so the 60/40 rule applies, making the holding period irrelevant.
Greeks.Live21.11.25

Does the Holding Period Matter for Options on Section 1256 Contracts?

No, the holding period does not matter for options on Section 1256 contracts (non-equity options). These options are themselves Section 1256 contracts and are subject to the mandatory 60/40 rule and mark-to-market accounting, which disregard the actual holding period for tax classification.

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