What is your holding period return?

Question

You purchased 1,000 shares of Y Inc. common stock one year ago for $50 per share. You decided to take your profit today by selling at $55.00 per share. What is your holding period return?

Answer 1

For tax purposes it is a short term capital gain. To become a long term capital gain it would have to be held for over a year without ever being part of a straddle.