Hi all,
I have a simple question regarding the calculation of CGT when it comes to options.
Consider the following scenario:
Does this mean I have experienced a capital loss of $2? More specifically, can I directly compare this buy and sell to be a CGT event?
Thanks for your help in advance!
Hi @ARoy,
No, you haven't experienced a capital loss of $2 in this scenario. The two options you've described are separate CGT assets because they have different strike prices and terms. You can't directly compare them as a single buy and sell transaction.
When you dispose of an option, a CGT event happens. For the call option you sold with a $7 strike price, you'd calculate the capital gain by subtracting the cost base from the capital proceeds. The option you bought with a $5 strike price is a separate CGT asset that you still hold, and you'll only work out a capital gain or loss when you dispose of it.
The two options are separate CGT assets. They can't be combined to produce a $2 capital loss. Each option’s capital gain or loss is calculated separately when the CGT event happens for that specific option (such as disposal or expiry).
Hi @ARoy,
No, you haven't experienced a capital loss of $2 in this scenario. The two options you've described are separate CGT assets because they have different strike prices and terms. You can't directly compare them as a single buy and sell transaction.
When you dispose of an option, a CGT event happens. For the call option you sold with a $7 strike price, you'd calculate the capital gain by subtracting the cost base from the capital proceeds. The option you bought with a $5 strike price is a separate CGT asset that you still hold, and you'll only work out a capital gain or loss when you dispose of it.
The two options are separate CGT assets. They can't be combined to produce a $2 capital loss. Each option’s capital gain or loss is calculated separately when the CGT event happens for that specific option (such as disposal or expiry).
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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