Section 1256 and the 60/40 Tax Treatment of Index Options
Broad-based index options such as SPX receive a tax treatment that equity options do not: Section 1256's 60/40 split, applied regardless of how briefly you held the position. This is a factual walkthrough of what the rule is, how it is reported, the two features most explainers omit, and where its advantages disappear. It is not tax advice, and the reasons a page like this cannot be are part of the explanation.