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Is this a Wash Sale

Posted on 12/3/25 at 2:17 pm
Posted by MadisonvilleTiger24
Member since Jul 2021
20 posts
Posted on 12/3/25 at 2:17 pm
I own 50 shares of stock X
I own 1 call option of stock X that expires December 19th

Can I sell the 50 shares of stock X at a loss right now and then exercise the call option to take ownership of 100 shares of stock X?

I know if I sold Stock X at a loss right now and then repurchased on December 19th then that is a wash sale. However I didn't know if things change with the call option
Posted by LSUcam7
FL
Member since Sep 2016
8854 posts
Posted on 12/3/25 at 2:31 pm to
Almost sure that the answer is yes

The exercise is an execution of the right to purchase shares at “X” price.

Definitely sounds like a wash sale.
Posted by BillysIsland
Member since Aug 2025
1308 posts
Posted on 12/3/25 at 2:35 pm to
Chat gpt says

Short answer: No, that does NOT avoid the wash sale. Exercising your call option counts as reacquiring substantially identical stock, which triggers a wash sale if it happens within the 30-day window.

Posted by beaverfever
Arkansas
Member since Jan 2008
35461 posts
Posted on 12/3/25 at 2:55 pm to
Those little Ws piss me off. It’s like they’re hanging out just to remind me that I’m an idiot.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
40248 posts
Posted on 12/3/25 at 9:37 pm to
Yes exercising a call option is a purchase
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