Option selling while domiciled in Switzerland

Hi All,

Old topic, however does anyone actually tried options selling while being domiciled in Switzerland?
Won’t you get automatically listed as professional trader? And how to deal with Swiss tax authority and annual tax declaration, ie. list each and every trade when writing weekly put options?

ps. please no “pinching pennies in front of train” comparison.

Thanks

  1. Do you mean short selling options and try to buy them cheaper?
  2. Are you trading for yourself only? This may make a difference tax-wise.

Hi @monkk

I’m a daily option trader since 5 years with different strategies, but also have my 9-5 job as an IT guy. Never had an issue with tax declaration from making money with options – just some issues with not declaring all the dividends income into the right columns in easytax.

I just give them my IB statement overview … in the first years I gave them the complete trading pages as a pdf file. But IB Zug told me, it’s more then enough to give them just the overview, if they have some questions they will contact you. It also depends where are you living…

Hi @MeowMeowFuzzyface and thanks for sharing your experience, hopefully Zurich tax office is same understanding.

I don’t trade live yet, but sniffing around of selling intra-weekly options on index future and holding until expiry. This would result in about 150 transactions a year, thus was worried to be assigned pro-status and get into nightmare of declaring each transaction and it’s profit.

Fancy sharing some details about ideas and achievements?

Cheers

Start with simple stuff, check out strategies:
http://www.theoptionsguide.com/option-trading-strategies.aspx

Some tools which can help you with trading options:

Tradingjournal:

Backtesting:
https://cmlviz.com/register/options-trading-software/

Screeners:
https://finviz.com/
Tos (www.thinkorswim.com)

Analyse software (for complex strategies):
https://www.optionnetexplorer.com/

Thanks @MeowMeowFuzzyface, great stuff.

Btw, how tax office interprets profit from Options trading? As capital gains or somehow else?

Article (german):

Einsatz von Derivaten
Der Einsatz von Derivaten kann der Absicherung namentlich des Aktienver-mögens dienen. Übersteigt der Einsatz von Derivaten aber die Absicherung von Risiken und wird im Verhältnis zum Gesamtvermögen ein grosses Volumen umgesetzt, so ist der Handel mit Derivaten gemäss Ansicht der Steuerbe-hörden als spekulativ zu qualifizieren, was auf gewerbsmässiges Vorgehen hin-deutet.
Der Grundsatz des steuerfreien privaten Kapitalgewinns für in der Schweiz wohnhafte Personen ist steuerlich attraktiv. Wenn der Handel mit Wertgegenständen jedoch ein Ausmass annimmt, welches einer selbständigen Erwerbstätigkeit gleichkommt, ist dieser Steuervorteil verloren.

Never paid capital gains with option trading in the last 5 years.

please no “pinching pennies in front of train” comparison.

No problem, since it is a bad comparison.
It is more like pinching pennies on train tracks that look abandoned. You can do it for years without seeing any train…

@MeowMeowFuzzyface,

Do you remember which exactly IB report did you provide to tax office?

Thanks

Interested in taking up trading options as well, beyond just hedging. Premiums are getting too juicy to ignore

Are you trading in individual account or did you register a trading firm or something similar? Do they treat you a professional trader? How are options taxed otherwise, selling and profit/loss from exercising?

Wanted to follow up on @pandas question - anybody with experience with options trading and its effect on tax, pro trader classification, etc.?

No news from panda?
Would be nice to develop more this topic.

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