I invest in options, mainly CALLs, on ETF that represent major stock indices such as the S&P500 (SPY) and like to hold them for more then one year to take advantage of having them taxed as long term capital gains. I am aware that certain investments such as futures contracts are taxed differently under section 1256 that mandates all such transactions be marked to the market at the end of the year and taxed using the 60/40 rule.
Does anyone know how options on these ETFs are to be treated?