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REDDIT

Selling Covered Calls to Tax Loss Harvest

Y
Dec 5, 2025 · 18:57

I have a bunch of loser stocks I want to sell to offset some gains this year. I thought I'd be clever and sell in-the-money covered calls on them to at least capture some premium while I get rid of them. But does this somehow trigger a wash sale? (Assuming I do NOT buy them back for at least 31 days). I'm seeing conflicting information with online sources.

I have 100 shares of ABC and I'm down $2,000. I can sell 1 contract on ABC for $250 to expire next week. Let the price hit. Be assigned and forced to sell. Which is what I want to do anyway.

Thoughts?