4. An investor buys 1,000 shares of Corp ABC on Jan. 31 2018. ABC will announce its quarterly earnings on May 15, 2018. The investor is nervous because it is afraid ABC will miss the earnings forecast and will decline in price. The investor buys 10 puts on ABC on May 14. The earnings actually exceeded the investors expectations and ABC goes way up in value. The investor sells the puts on May 16. On February 15, 2019, the investor sells the ABC stock for a substantial gain. What is the nature of the gain on the stock for federal income tax purposes?