We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Short-Term Gain

See: Short Term Loss. Then divide by negative one. Short term gains are taxed at ordinary income rates and distinctively, you sold a call option that was dated to expire over a year away, it'd still be taxed as a short term gain, assuming you made money. Pretty much everything Derivative gets taxed as short term ordinary gains. Why? As your parents say, "Because I (RS) said so."

Find other enlightening terms in Shmoop Finance Genius Bar(f)