Dealer equity option

A dealer equity option is any equity option listed on a qualified board of exchange, that is bought or granted by an options dealer (any person registered with an appropriate national securities exchange as a market maker or specialist in listed options).[1][2] The dealer should be registered with the qualified board of exchange where the option is listed.

Under U.S. tax law, a dealer equity option qualifies as a 1256 Contract, and benefits from several tax advantages.

See also

References

  1. ↑ "Section 1256 Contracts Marked to Market". Internal Revenue Service. Retrieved 16 April 2011.
  2. ↑ "TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter P > PART IV > § 1256". U.S. Code. Cornell University Law School, Legal Information Institute.


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