Treasury Regulations · 26 CFR
§ 1.1092(c)-3. Qualifying over-the-counter options.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 1092(c)
Cite as 26 CFR § 1.1092(c)-3
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- April 29, 2002 by 67 FR 20900
- Issued under
- 26 U.S.C. § 1092(c)
- Length
- 183 words · about 1 min to read
- Cross-references
- cites 1 Code section and 2 regulations; cited by 0
¶(a) In general. Under section 1092(c)(4)(B)(i), an equity option is not a qualified covered call option unless it is traded on a national securities exchange that is registered with the Securities and Exchange Commission or other market that the Secretary determines has rules adequate to carry out the purposes of section 1092(c)(4). In accordance with section 1092(c)(4)(H), this requirement is modified as provided in paragraph (b) of this section.
¶(b) Qualified covered call option status. A qualifying over-the-counter option, as defined in § 1.1092(c)-4(c), is a qualified covered call option if it meets the requirements of §§ 1.1092(c)-1 and 1.1092(c)-2(c) after using the language “qualifying over-the-counter option” in place of “equity option with flexible terms”. For purposes of this paragraph (b), a qualifying over-the-counter option is deemed to satisfy the requirements of section 1092(c)(4)(B)(i).
¶(c) Effective date. This section applies to qualifying over-the-counter options entered into on or after July 29, 2002.
[67 FR 20900, Apr. 29, 2002]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
Regulations it cites
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued (67 FR 20900)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Wash Sales of Stock or Securities
Nearby sections
- § 1.1092(b)-5T Definitions (temporary).
- § 1.1092(b)-6 Mixed straddles; accrued gain and loss associated with a position that becomes part of a section 1092(b)(2) identified mixed straddle that is established after August 18, 2014.
- § 1.1092(c)-1 Qualified covered calls.
- § 1.1092(c)-2 Equity options with flexible terms.
- § 1.1092(c)-3 Qualifying over-the-counter options.
- § 1.1092(c)-4 Definitions.
- § 1.1092(d)-1 Definitions and special rules.
- § 1.1092(d)-2 Personal property.
- § 1.1201-1 Alternative tax.