Does selling covered calls imply trader status?

Hi Mustachians,

assume one owns an ETF or a stock that also has an active option market. Here assume I own say 100 SPY stocks, this ETF has monthly/weekly options:

If I sell one out-of-money call contract a month out hoping that SPY won’t reach the strike price and I just collect the premium, will the tax authorities consider this premium as income? Will I be considered a trader from a tax status?


It does not imply anything per se. The only published set of criterias there is determines when you are definitely not a professional trader. But yeah, with your behaviour you are definitely risking getting it.

You can write to your tax office, describe what you want to do and ask for a binding tax ruling - this is the only way to know for certainty.

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