if you use put options as a stop loss for long term investor portfolio, how do you treat them tax wise
I buy 200 NAB at 35$, also protect them with matching 200 options at $35 for a cost of $X dollars
when options expire 2 cases:
1) NAB has fallen let's say to $20, I sell my 200 at $35 via option-> I have lost $X dollars (but only $X)
2) NAB went up or stay same: let's say $36, I do not sell anything, but I have lost $X as the options are worthless
how do you treat it tax wise?
case one seems "easy": capital loss of X$ or is it but in case 2??
Any help welcome, and this is not an actual case so prices/nb given as example only