How to recover wash sale losses from option trades?

Forum|Forum|1 year ago
April 12, 2025
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I have significant wash sale losses from trading options contracts for stock symbol ABC. How can I recover those losses if I don't trade stock or options for ABC any more, even a year later?

All the explanations I have read online include examples where the option or stock for same company is REPURCHASED, and the loss from the wash sale is recovered by adding to the cost basis of the new purchase.

Is there a way to recover the wash sale loss without purchasing options or stocks of the same company again at a later date (beyond 61 days)?

Not A Product Question

baldietax

have you checked the basis on your other lots of ABC options; when the loss is disallowed, the cost basis of the purchase that triggered the wash sale should be adjusted, it doesn't disappear. Ideally your broker should be indicating both a lot affected by a wash sale and the lot with the adjusted cost basis.

either you are selling at a loss and already have another lot you purchased previously within the wash sale window and the basis of that purchase should be adjusted. or you sell at a loss with it's not a wash sale at the time of sale, but you happen to buy that security ('substantially similar') back within the window, now it becomes a wash sale in retrospect and will affect the basis of the new buy.