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spx vs spy

Index Options vs. Equity Options: Cash Settlement & Tax Rules

October 5, 2026September 30, 2026 by Bruno M.
AI-generated editorial image: A minimalist desk with an open notebook, pen, and ceramic coffee cup beside a bright window

Learn how index options differ from equity options in cash settlement, European exercise, early assignment risk, and Section 1256 60/40 tax treatment.

Categories Market Education Tags cash settlement, index options, investing basics, options trading, section 1256 contracts, spx vs spy

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