Originally Posted by jgoss711
Thank you for your comment. I agree with your definition of a LEAP, and have no disagreement with anything in your remarks. However, I don't believe you answered the question I posed, which is what is the tax treatment of a short put held over 12 months.
For a put, when you sell it at the LEAP's strike price and subsequently makes a profit , you need to pay capital gains tax based on the amount of TIME you owned it, without regard to the length of time you held the contract.