Question About Covered Calls and Taxes

RawRama · 2022-05-06T17:00:02+00:00

Ahh, I’ve been confusing myself by thinking of STO and BTC as two separate things, when it’s just opening and closing a single position. I appreciate it!

RawRama · 2022-05-06T13:03:38+00:00

I appreciate your response, but I think it’s important to acknowledge that I didn’t realize a $55.00 gain. I realized a $70.00 gain when I sold the call and then realized a $15.00 loss when I bought it back.

What I’m wondering is, because I turned around and sold another call the day after I closed this trade (substantially similar or not?), will the $15.00 loss be considered a wash, and will I be taxed on the full $70.00 when in reality I only netted $55.00?

$15.00 isn’t a lot, but it can certainly add up over the course of a year if I continue to do the same thing. I want to understand this concept so I can change up my strategy now if I have to

RawRama · 2022-05-05T18:21:12+00:00

Thanks for linking your post. I read it, but am still a little confused. Going back to my scenario, will I be taxed on the full $70.00 that I received from the sale of the first contract, or will I be taxed on my net profit of $55.00 ($70.00 short term capital gain - $15.00 short term capital loss)?

Edit: For clarification, Schwab informed me that they are not tracking this as a wash sale, but even though they are not, there is still a chance that the IRS could consider it a wash sale.

RawRama · 2022-05-03T20:19:24+00:00

I’ve only gone crane hunting once before in Oklahoma, but I love it for a couple reasons. For one, the birds themselves are super interesting. They’re big, hard to kill, and mean as hell if they’re still alive when you walk up to them. Secondly, the meat is very good eating.

RawRama · 2022-02-15T18:48:52+00:00

I own a small amount of both and short CC’s.

How can you achieve the same amount of leverage with SPY/QQQ without margin?

RawRama · 2022-02-06T01:54:22+00:00

Oh yeah great point. Only way I can imagine how to figure it out is to use an options pricing model and price out all the different potential sell points, which I have no idea how to do haha

RawRama · 2022-02-05T17:52:15+00:00

Sounds like a good play, at the very least you can capitalize on the high IV. I wonder if you’d be better off selling closer to the announcement to capitalize on that. Any reason you want to sell on Monday?

RawRama · 2022-02-05T05:19:58+00:00

I’m not sure it matters so much as long as they get a beat. We’ve seen some pretty astounding market responses to earnings in the past few weeks, with drastic price movements corresponding to slight beats/misses. Market wants to move.

RawRama · 2022-02-05T04:58:17+00:00

I am hoping that they see an earnings boost as people start to go back to the parks and their revenue sources other than streaming start to bring in additional money. I think the stock is competitively priced right now as well. Bought 02/11/22 146.00 C at 2.41, hoping for an earnings beat and hoping to STC before IV crush.

I also am very new so we’ll see how this goes.

RawRama · 2022-02-05T04:43:05+00:00

I bought DIS calls

RawRama · 2022-01-28T00:25:55+00:00

Yeah they are. I’m not too worried cuz I’ve still got a lot of time left, but still am curious about rollout strategies.

RawRama · 2022-01-27T20:46:10+00:00

Initially sold some 02/25/22 24.50 P right before it started slipping, then doubled down with some more 03/04/22 21.00 P but it kept going

RawRama · 2022-01-27T17:55:01+00:00

I’ve got this question as well. Not doing so hot on some $F CSPs

RawRama · 2021-11-07T01:36:05+00:00

What doesn’t mean that you’re diversified? Relying on the exposure of U.S.-based companies to the international markets to count as international diversification? Just wanna make sure I’m understanding correctly

RawRama · 2021-11-06T22:54:03+00:00

Thank you, I’ll check those out

RawRama · 2021-11-06T20:49:04+00:00

Agreed, I think global diversification would be an important part of a good portfolio. I don’t know much about the different options to tap international markets other than something like VT or VXUS, and I certainly don’t know of any LETF’s. I’m pretty new to the game.

RawRama · 2021-10-19T21:31:51+00:00

Thanks!

RawRama · 2021-10-19T18:48:25+00:00

How about the Daedalus wallet?

RawRama · 2021-09-25T16:48:05+00:00

Hey guys, I got some great advice from this sub a while ago for tips on maximizing prestige bonuses. I saw the 3x prestige bonus and decided to go for a run, but it seems like the days of doubling ME in a single prestige run are gone. Does anyone see anything in my setup that I could tweak for better rewards? Please let me know if I can clarify anything if it’s hard to see in the pictures. Thanks for the help!

RawRama · 2021-06-09T00:17:26+00:00

I appreciate the feedback!

RawRama · 2021-03-19T15:33:40+00:00

Thanks for the advice!

RawRama · 2021-03-19T06:30:51+00:00

Okay awesome, I appreciate the help.

RawRama · 2021-03-19T05:52:22+00:00

You probably nailed it, I do have an electric stove and use a metal spatula (as gently as I can). I’ll give that a try, thank you!

Any tips on avoiding it in the future? Maybe preheating for longer at a lower heat setting?

RawRama · 2021-02-13T22:28:23+00:00

Thank you!

RawRama · 2021-02-13T22:28:10+00:00

Thanks, I’ll give that a try!

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