What Types of Options Contracts Qualify as Section 1256 Contracts?

Options contracts that qualify as Section 1256 contracts are generally "non-equity options" traded on a qualified board or exchange. This includes options on broad-based stock indexes (like the S&P 500 or NASDAQ 100) and options on futures contracts.

Options on individual stocks or narrow-based indexes are typically considered "equity options" and do not qualify for the 60/40 tax treatment.