Taxes and options trading

Generally, options are taxed at either short-term or long-term tax rates, depending on how long you have held the options contract. Some index options fall under Section 1256 Contracts, which means that regardless of how long you own them, gains or losses on these contracts are treated as 60% long-term gains and 40% short-term gains. 

eToro Options does not provide tax advice and you should consult a tax professional regarding the tax implications of transacting on eToro Options prior to investing.