How Does the Holding Period Differ for a Written (Sold) Option?

The holding period for a written option is generally irrelevant for tax purposes. If the option expires, the premium received is a short-term capital gain, regardless of the holding period.

If the option is closed via a buy-to-close transaction, the gain or loss is short-term. If the option is assigned, the premium adjusts the basis or proceeds of the underlying asset.