Yes but it's the strategy that's important not the accounting. From what I read if you buy an equity, contract or option within 31 days prior or after selling the same position for a loss, that first loss is not reportable nor can you offset a gain with it. The wash transaction completely voids the prior transaction for tax purposes. Now the loss is not permanently lost, the amount of the first loss is added to the cost basis of the second transaction. Kind of carrying the loss forward. That was all news to me.