While there may be a distinction here to avoid said wash sale I wouldn’t be able to opine on this, especially on this type of play.
What I would say is that any loss disallowed from 2021 would most likely be allowed in 2022 given that this play is over within the next month. Which can be used to offset current year gains.
I believe this would not count as a wash sale as it is not “significantly similar”. Ultimately this depends on your accountant and you may need to call the IRS to argue this, but IMO (not CPA) as you are buying a nonsimilar security (i.e. opposite direction), this would not count as a wash sale.
I found this chart online:
Interestingly, selling a put (technically long position) would not count as a wash sale. This chart was found from this website. Please note it is most likely their opinion. You’ll find tax is often nuanced and can be open to interpretation (which is why tax lawyers make bank).
Your best bet would be to not trade anything related to the security for 31 days if you want to retain the loss for tax purposes.
On 1/9/22 a Twitter user named Spacul8r hosted a Spaces event, a voice chat round table. I recorded it and uploaded it to YouTube.
If video isn’t playing then it’s not done processing, just check back later.
@holi I listened to your discussion on twitter this evening, great presentation, it’s amazing the way this community shares for everyone’s success, thank you for your contributions.
Quick follow up - you mentioned itm calls are more attractive for several reasons. I’m planning to purchase calls tomorrow if it dips (definitely not at open). I’m trying to understand the pros cons of 10s vs 12.5s assuming the price stays above 12.5 (or does it really matter). Can you help?
Assuming the gamma squeeze plays out:12.5s are going to be more profitable, and will add the same amount of pressure as the 10s assuming $ESSC slowly drifts up this week like it did last week.
However, If $ESSC were to trade flat until expiration, the 10s would give you much more protection on your investment because they have no extrinsic value at this price point, meaning you won’t lose any money to theta.
Also: with the NAV floor in place, realistically the lowest the 10s can go is .26, while the 12.5s can go to 0
Thank you
Back with another OI comparison update
Top photo is Dec the say before the run to $26
Bottom is as of today jan 10th
There were 12,800 ITM options in December just before the first run
There are now 27,800 contracts ITM as of jan 10 and still 2 weeks out from opex……
Clear skies ahead.
Id also like to point out the ramp that is forming for January…. Absolute insanity
| Strike | OI | Change | %Change |
|---|---|---|---|
| 10c | 9581 | -41 | -0.4% |
| 12.5c | 17673 | +169 | +1% |
| 15c | 9176 | +1813 | +24.6% |
| 17.5c | 5980 | +1026 | +20.7% |
| 20c | 3942 | +36 | +1% |
| 22.5c | 1798 | -121 | -6.7% |
| 25c | 9325 | +795 | +9.3% |
ITM OI is 229% of the float. The entire chain accounts for 482% of the float. (1.191 million float)
For consistency, using the 1.5M float figure which has been used to afford us padding in our calculations even though it is believed the float is around 1.1M (which is the figure @holi uses above for his calculations).
ITM OI is at 182.1% of float (up from 181.5%), the $15 bring it to 243.2% of float (up from 238.6%) and the whole chain is up to 382.7% (up from 373.4%)
Using 1.5M for the float.
Let me know if this is not useful and if I should stop providing these %s with the 1.5m float at this point.
The consistency is valuable (for me at least) as long as you don’t mind doing the work!
There still seems to be some confusion around whether or not Sea Otter can buy back their shares from trust, I followed up with spacul8r and it looks like the trust confirmed that the redeemed shares are no longer valid.
Super low volume on ESSC today…. Expecting tomorrow or by Wednesday the latest to see the next big spike in volume if its holding the same trend.
Not expecting to see any hedging until a close over $15 or sometime next week.
Another note on ESSC expecting more volume with the increase in OI after friday. Not expecting much OI to be added or lost from today as it was relatively flat. But from the jump in OI from friday to monday I expect that to gain traction and bring in more retail volume soon.
Was pleasantly surprised to get clarification on having a 1.1m float. Thank you conqueror, and microdick for that
Other than that everything looks to be going as expected, low volume days followed by a spike in volume. Continuing to form that sweet gamma ramp we all love. Skies looking clear for takeoff. Godspeed brethrens🤝
Filing released proving that ESSC is having merger issues which means that any chance of the merger happening before OPEX is most likely null end void.
Link 
https://www.sec.gov/Archives/edgar/data/1760683/000121390022001365/0001213900-22-001365-index.htm
Please excuse my lack of knowledge, but is this bullish for our play or bearish
Bullish.
Bullish
