Does the Wash Sale Rule Apply to a Spread Trade (E.g. Selling One Strike, Buying Another)?

A spread trade itself does not automatically trigger the wash sale rule, as the two legs are usually not substantially identical. However, if one leg of the spread is closed for a loss and the remaining leg is deemed substantially identical to a new position acquired, the rule could apply.

The key is whether the new purchase is substantially identical to the security sold at a loss.