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REDDIT

Is there anyway to reduce the ~50% tax bill from short term capital gains from options?

T
May 5, 2026 · 01:26

Curious.

I have an ITM trade on $CMPS that expires in 01/2027.

However, they're not LEAPs as it is a \~10 month play.

Based on my math, the combined taxes on my profits (both federal and state, in CA) seem like it's going to be \~50%, which is nuts.

Is there anything I can do to minimize the tax rate?

Also, instead of cashing out this year, I'm thinking about cashing out close to expiration in 01/2027, then rolling the profits into a different play with LEAPs this time - wondering if that's a good move?

Thanks!