Had a few questions surrounding these 2 areas:
1. Do options that expire worthless become a capital loss?
2. Do options that are exercised on or before expire date become a capital gain (less the premium)?
3. Since I haven't executed my first trade yet; what is usually involved in exercising an option? i.e. Do most online brokers simply have a button that executes the transfer immediately?
4. After reading the following from the ASX site:
In order to claim an imputation credit you must be an Australian resident for tax purposes and you must satisfy the 'holding period rule' in respect of the shares. The holding period rule requires that you own the shares without a reduced risk of gains or losses from those shares (through hedging or other means) for 45 days.
Does this mean that if I bought shares in company XYZ followed immediately by a put option on company XYZ to reduce future losses (which may/may not expire worthless), I wouldn't qualilfy for franking credit offset come tax time?