NorthWest Biotherapeutics Inc (NWBO)

[rogers5729]

I’m not convinced the cost basis is very high on this option. First, LP’s cost basis isn’t $0.25 because that’s the strike price, not how much she paid for the option.

Second, even though the option is in the money now, it’s not exercisable until 12/1/20. So really the cost basis might very well be $0. The options right now are not being publicly traded. Typically, options prices are complex, with price premiums for volatility, strike price, and time to expiration. There’s no way to accurately estimate what those would be. Given that they’re not even exercisable, I think you could perhaps make the case that this is a $0 cost basis. Remember — these are options, not shares!

(I’m not a tax pro, admittedly).