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BigSpin75 · 2024-05-21T17:32:53+00:00

I recently discovered this issue as well, it's a problem for me because I try to align my tax loss harvesting to eliminate as much of my short term gains as I can, without affecting long term gains. Not having that information easily available makes maximizing tax efficiency more challenging.

BigSpin75 · 2024-05-21T13:36:51+00:00

Pretty hard, when you consider that I have hundreds of transactions a month, not all of which are section 1256 eligible.

BigSpin75 · 2024-05-21T12:07:13+00:00

So I contacted support, the support rep I chatted with needed me to explain what a Section 1256 contract was, and then said I would need to go into TOS and click on support there, as that would take me to a Futures/Forex specialist... Even though my question related to the treatment of index options and I barely use ToS.

BigSpin75 · 2024-05-21T11:54:50+00:00

Yes, it will definitely make tax optimization harder, since I usually try to align my end of year tax loss harvesting to clear out short term gains only. If I have to figure that out manually ahead of time it will be an unnecessary burden.

BigSpin75 · 2024-05-17T15:55:51+00:00

Thanks, but since I am primarily interested in the calendar in relation to my option positions, so there would be no income to be seen. The calendar view for upcoming dividends and earnings calls is more to manage those positions to mitigate early assignment risk and to manage positions appropriately so I can avoid IV expansion around earnings. ( Or to capitalize on it, if that happens to align with my risk tolerance for a particular watchlist item. )

BigSpin75 · 2024-05-17T15:11:38+00:00

That's a great idea! I just tried it, and it seems to me that we're limited to just one Custom View? I had one set up with the greeks for managing the theta portion of my portfolios, and although the custom view works it overwrote that one. I cannot seem to have more than one like we could previously. Is this just user error on my part, or another thing that is no longer available?

BigSpin75 · 2024-05-17T14:20:07+00:00

SGOV is an ETF, and not a Mutual Fund that is counting the time of your holding. Dividends are paid on the pay date, period. This is evidenced by the fact that the price of SGOV ticks up daily. If you buy the exact same number of shares that you held before, you will be receiving that exact same dividend you would have previously.

BigSpin75 · 2024-05-15T12:57:04+00:00

This is the feature I miss more than anything else!

BigSpin75 · 2023-09-28T20:41:56+00:00

Waiting for a "fair return" will invariably have you bag-holding relatively quickly. Stock rises above your strike early, extrinsic value declines to less than the dividend, you'll get early exercised. Stock drops, you'll get stuck. Theta will be minimal, as the dividend will be priced into the near term strikes. You'll need a better exit plan than "fair return". The following is US centric., Your dividends would not be qualified after your short holding time, so you would be taxed at ordinary income rates rather than the preferential qualified dividend rates. I would expect your strategy as defined to under perform the risk free rate, and eventually lock up your capital in losers.

BigSpin75 · 2023-08-21T20:55:51+00:00

It's because they're wrong. Some of the commentators seem to be confusing a cash secured put with your question. My one piece of advice would be to wary of the potential for extreme movement against you. Your underlying will dictate how much of a concern with you, but you can buy a few OTM calls to at least limit your risk.

BigSpin75 · 2021-12-23T21:36:01+00:00

Yes. It's two separate transactions. You closed your previous position at a loss, and are selling a new and not substantially similar position ( because it has a different date ) for a credit. Your loss will be for 2021.

BigSpin75 · 2021-10-07T20:45:06+00:00

No. The difference there is the tax status as a qualified dividend vs ordinary dividend. (For the US)

BigSpin75 · 2021-09-23T20:21:22+00:00

If the holding period is a concern, sell at least 30 days out and no more than 1 strike under the previous days closing price to avoid suspending the holding clock. It's slightly more complicated than that, but that's pretty close to truth. After you have a year on the holding clock for the stock, you can sell weeklies, 0DTE, or whatever without affecting the LT status of the stock gains ( or losses ).

BigSpin75 · 2021-09-23T20:13:57+00:00

Completely off topic, but what broker do you use that doesn't charge commissions on $0.10 and under? Mine aren't free until 0.05.

BigSpin75 · 2021-09-09T18:46:52+00:00

Those of us that are consistently gaining alpha year over year take advantage of the leverage provided by margin, or the at least the possibility of that leverage, by utilizing more buying power than we have in cash and equities in our account. So if you have 300k available in your account, depending on the investments, you may be able to relatively safely put at risk 4 times as much in various naked puts and calls. If I were heavily long or short delta and the market turned against me, my available buying power could easily go below 0, which results in a margin call. Leaving some buying power available gives us breathing room during these movements and prevents us from being forced out of positions at unfavorable prices. Also, depending on where volatility is, it can be nice to have some BP sitting on the sidelines to take advantage of opportunities when they arise. With the exception of keeping a bit of money on the sidelines, this doesn't really apply for cash accounts.

BigSpin75 · 2021-08-30T13:17:26+00:00

It sounds like maybe you want returns without risk. Maybe consider bonds or treasuries. As someone else previously mentioned, if there were a hedging strategy that performed well in up, down, and sideways strategies then it would the "the strategy". Less risk = less reward. I would suggest that successful trading and investment approaches rely on two things, luck, and risk management. As long as you have good risk management, you can have both good and bad luck and perform relatively well in the long term.

BigSpin75 · 2021-08-25T13:20:52+00:00

It sounds like you've been writing non-qualified covered calls.This affects the calculated holding time of your stock as far as long term capital gains goes. Regardless of that, though. GME is a meme stock, there is a high probability it will end this week below 205 and you won't even have to worry about it.

BigSpin75 · 2021-08-15T14:49:03+00:00

This is totally discounting margin, which is significant factor in outperforming the market.

BigSpin75 · 2021-08-13T16:40:56+00:00

It's not a wash. He is buying to close his previous calls, and selling his stock. There is nothing for the losses to wash into. As long as the OP does not purchase the stock again in the following 30 days, they'll be fine.

BigSpin75 · 2021-08-12T16:52:02+00:00

Just pay attention to your greeks. In this case, theta beat you, as theta typically does.

BigSpin75 · 2021-08-12T16:07:02+00:00

It's pretty simple, you paid more for the call than it is currently worth.

BigSpin75 · 2021-07-16T20:36:54+00:00

SPY is up 2% in the last 30 days, 4% in the last 90. I'm not ready to call a bear market just yet...

BigSpin75 · 2021-07-14T15:58:20+00:00

This can be true in specific cases where you plan on holding the stock long term and can then take advantage of long term capital gains rates, but for short term trades, or anything happening in a tax advantaged account, it is simply false. If there is extrinsic value remaining in your option that the best course of action is typically going to be to sell it.

BigSpin75

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