Hello MrIncognito, If you bought the options on market, and they...

Hello MrIncognito,

If you bought the options on market, and they expire worthless, then yes they can be treated as a capitol loss. It would be just like buying shares and the company folds rendering those shares as worthless, you can claim it as a loss.

Now if you came about the shares by participating in a new share issue and the options were a bonus, eg maybe one option for every 5 shares bought, then i would feel the options would not be able to be treated as a capitol loss as you have not expended money for the options, only the heads. You still own the heads for which you expended your money for.

Now i could be wrong about this, but that is how i see it.
Happy to be corrected if i`m wrong with m y thinking.

All the best, regards The Tinhopper