*Official* Options trading thread: Why Alpha/Beta when you can Theta?

[Heaney]

Let this be a warning to all of you when it comes to taxes... Just got my preliminary numbers from my accountant... I'm looking at $30k. Not coming TO me, but giving to the I-R-FUKKING-S. I'm shook.

Trading in a tax free acct for the win.

[chino3]

Trading in a tax free acct for the win.

I'm doing that with my IRA which is only $80k worth. My main trading account is where my main nut is, and not sure if it's the same for you guys, but there's no point in going all in in a tax deferred account, since I will absolutely be using the money prior to the non-penalty age...

[Heaney]

I'm doing that with my IRA which is only $80k worth. My main trading account is where my main nut is, and not sure if it's the same for you guys, but there's no point in going all in in a tax deferred account, since I will absolutely be using the money prior to the non-penalty age...

Little bit different in Canada, I'm allowed to trade in a TFSA (tax free savings account) and actually withdraw tax free as well, I'm just not able to withdraw to use as an income source tax free. My other account that my employer matches in is my RRSP which is what I believe you guys would call an IRA/401K style (penalties for deductions unless its for first time house buying).

I was initially cautious that the TFSA thing was too good to be true but got confirmation through my broker last week that I don't actually even receive a tax slip for tfsa trading.

[headturner1]

Let this be a warning to all of you when it comes to taxes... Just got my preliminary numbers from my accountant... I'm looking at $30k. Not coming TO me, but giving to the I-R-FUKKING-S. I'm shook.

You had to know that was coming.

I have a buddy who made a fukton trading spg out of the trough last March.

He figured his tax liability as he went and it’s like 40k, but those sweet gains make up for it.

[chino3]

You had to know that was coming.

I have a buddy who made a fukton trading spg out of the trough last March.

He figured his tax liability as he went and it’s like 40k, but those sweet gains make up for it.

I knew I was gonna be writing a big check, just didn't think it would be a big fat fukkin check... I took time off from work for the first 4.5 months of the year to travel, so no income, and I had a little over $10k in repairs/turn costs for my rental, so I was really hoping I would see a bit of a break lmao.

[headturner1]

I knew I was gonna be writing a big check, just didn't think it would be a big fat fukkin check... I took time off from work for the first 4.5 months of the year to travel, so no income, and I had a little over $10k in repairs/turn costs for my rental, so I was really hoping I would see a bit of a break lmao.

Haha, wishful thinking. The IRS goes in dry lol!

[TugOfPeace]

Taxes are why I'm not terribly impressed with my gainz. If I make $10k that really means I made $7.6k. If I want $100k cash from trading I really need to make $131k.

[Heaney]

Taxes are why I'm not terribly impressed with my gainz. If I make $10k that really means I made $7.6k. If I want $100k cash from trading I really need to make $131k.

To be on the safe side I increased my RRSP contribution to 20% of my gross pay this year, best case I get an absolute banger of a refund back and worst case I break even if somehow I've been reading Canada's investing laws incorrectly.

[headturner1]

Taxes are why I'm not terribly impressed with my gainz. If I make $10k that really means I made $7.6k. If I want $100k cash from trading I really need to make $131k.

people are going to be feeling a lot of pain from 2020 taxes.


Having been in the market for quite a while, I’m used to the pain at tax season.

Before I was active, I used to get money back every year lol

[Carbonfibre]

should have bought CCIV calls this morning.


2/19/21 $40 are exploding


dangerous game to play obviously with everything depending on merger going through or not.


IV is very high for CCIV.


but having sold all my CCIV shares earlier, way too expensive to get in now.

[dopamine72]

lol @ new thread title, no options playing for me and I'm up 25k + in 4 months. Long term holding FTMFW!!!!! Well....4 months isn't long and I know this is pennies to some of you ballers but u know...would have retired by now if I started with only 100k a decade ago. Keep grinding bros!!!!!! No force trading!

Let this be a warning to all of you when it comes to taxes... Just got my preliminary numbers from my accountant... I'm looking at $30k. Not coming TO me, but giving to the I-R-FUKKING-S. I'm shook.

My Cali bruh what about all the write-offs you can do with stonks, property, work related costs etc... PM me! Almost inclined to give you my number. I got a 7k property tax write-off that's gonna go right back into investing and the house.

[thatsnarf]

To be on the safe side I increased my RRSP contribution to 20% of my gross pay this year, best case I get an absolute banger of a refund back and worst case I break even if somehow I've been reading Canada's investing laws incorrectly.

not sure how you guys do it in canada but best thing that could happen is breaking even. you're only just getting back your free loan to the gubment if that's the case.

[chalup]

lol @ new thread title, no options playing for me and I'm up 25k + in 4 months. Long term holding FTMFW!!!!! Well....4 months isn't long and I know this is pennies to some of you ballers but u know...would have retired by now if I started with only 100k a decade ago. Keep grinding bros!!!!!! No force trading!




My Cali bruh what about all the write-offs you can do with stonks, property, work related costs etc... PM me! Almost inclined to give you my number. I got a 7k property tax write-off that's gonna go right back into investing and the house.

This if you own a house you can write off mortage, anything work related, equipment, etc. Can atleast half it. Can you brahs dumb down calls and puts for me. Take AMC for instance, next weeks calls and puts are low AF. Calls at 1.80-3.10, puts at .94 to .29. So say I buy a put .94-95 at its price now. im basically betting the price will fall to that level by the exp of that week? what if it lands at like 1.50? Same with a call, lets say i buy the 5block 3.10-3.20 and the price stays at 7-10 by exp date. How am I making money on those? I understand the basics, but actually ordering it through etrade or td ameritrade is confusing me.

[Heaney]

not sure how you guys do it in canada but best thing that could happen is breaking even. you're only just getting back your free loan to the gubment if that's the case.

I'm making interest on that money in my rrsp, I'm not paying extra taxes I'm contributing more to a tax sheltered account.

[chino3]

l
My Cali bruh what about all the write-offs you can do with stonks, property, work related costs etc... PM me! Almost inclined to give you my number. I got a 7k property tax write-off that's gonna go right back into investing and the house.

I'll shoot you a pm tonight for sure! I don't think there's any hope for me this year tbh. Problem is almost all financial/tax benefits I get from own property is superseded by my rental gains. The most fukked up part about that is that they don't calculate your net profit, they calculate the entire rental amount... So over $24k in rental income just washes out all those benefits.

[chino3]

you aren't the only one. let's just say so far in 2021 i will be paying way more than $30k.... fml... gotta talk to my accountant

nice brah. and yeah, feels already...


Also, have a call with my accountant to go over a potential saving grace today. Looking into "mark to market" status, and will report back.

[Destor]

Yeah 2020 will be an interesting tax year

I incorporated a company about halfway through 2020 and began working as a consultant, so I haven’t paid any tax since then. And I’m sitting on about $5k in GST that will need to go to the government

Tax bill on top of the GST will likely be $30k but I also contributed $40k to my RRSP. Not even sure how it’ll all math out on the end.


Edit: Wtf thought this was the trading thread

[chino3]

Edit: Wtf thought this was the trading thread

[Destor]

[img]https://www.memesmonkey.com/images/memesmonkey/d4/d4befd8676885d1f0a1089018b82cda4.jpeg

[RobParks2M]

Great CSP opportunity alert!

CSP on APXT (avepoint) 3/19 strike 15 for $2.10

If you actually get shares at $13 you got yourself one hellofa deal. Imo it would take a lot for them to go under 15. IV 130 currently

[chino3]

My TSLA strangle lookin pretty hnnngggg

TSLA
2/5
$850csp @ $45.592 x2
$900cc @ $7.593 x2

Spoiler!

Friday it was looking like I was getting assigned, and I almost set up aggressive CC's each week, in advance. Glad I didn't overreact and just chilled. It's only Tuesday, so who know what will happen. If I can close out at $8k prior to expiration, I will do it immediately.

EDIT: Update: Closing out the CSP leg with a $7.2k profit. Going to monitor the CC closely this week. Worst case scenario, I double down and buy shares on Friday to cover the calls.

This trade is fully closed. Obviously full potential profit not realized, but would like to continue to practice discipline, plus still not entirely comfortable with the market.

Max Potential profit was $10.6k
Closed at for $8k for 75% profit.

I have another strangle set for 3/19 as well, $900cc/$850csp,
The CSP is currently +20%. I might close that out if I can open a $900csp at my desired premium.

[Camecha]

First time I sold an ITM CSP $109 2/19 on ARKG for 5.4

Gonna close my CSP on CRSR if it hits 50% profit before the 8th, then sell another on the 8th before earnings

[ReyDelMundo]

Going heavy on 2/19 $35 PLTR calls. Earnings morning of 2/16. Btw, I don't follow these often, but I've never seen an annual earnings call scheduled for 8 am EST? I know there aren't many analysts on the west coast, but lol at 5 am time for them.

Pray for me bros. If this hits hard I'm upgrading my main residence, srs.

[chino3]

Going heavy on 2/19 $35 PLTR calls. Earnings morning of 2/16. Btw, I don't follow these often, but I've never seen an annual earnings call scheduled for 8 am EST? I know there aren't many analysts on the west coast, but lol at 5 am time for them.

Pray for me bros. If this hits hard I'm upgrading my main residence, srs.

earnings are either before or after the bell. isnormal

[chino3]

Modified my strangle for TSLA 3/19. Closed one leg out for +$4k. Still have 2 sets of CC's that I opened at a much lower level, so very upside down in. Added a higher strike leg for "insurance" combined with my existing shares. Current configuration:

TSLA
3/19
$900cc @ $22.99 premium x2
$1000cc @ $22.94 premium x2
$900csp @ $100 premium x2

OPC for reference: http://opcalc.com/nuf

Max profit potential is $29k @ $900 expiry price.
I am going to be fairly conservative with this one, at least that's the plan for now, and will most likely aim to close at 50%.

[mikebadg3]

Bought 10 2/19 $10 calls on VXRT today after it got pummeled down to 12

Then it got pummeled down to whatever it is now.

High IV

Went in thinking i might be able to catch a rebound to 15 or 20 from the yuge selloff


Does VXRT stand a chance to rebound so i can sell it off between now and expiration?

[usersignup2]

This trade is fully closed. Obviously full potential profit not realized, but would like to continue to practice discipline, plus still not entirely comfortable with the market.

Max Potential profit was $10.6k
Closed at for $8k for 75% profit.

Nicely done.

[roughinhouse]

got murdered on a gme put. Bought it today and crashed by over half its value with 5 minutes. $70 strike price.

[greenleaf]

Sold QCOM Feb 5 149 put to open. Looking to own the stock cheaper for a trade.

[Carbonfibre]

Got those apple calls early this morning.

50 @ $1.01 2/26 150$C



AMD kinda leaps 4/16 $100C still at $4.1 Was down early in morning bit when AMD was $85.

Those apple calls are not doing so well sighh.

Kinda phucked this up.

Even that apple / kia rumor pop from yesterday didn't do much.


That 150$C is now 0.65 was $1.01 when I bought.

Think I am gonna cut my loss here and just move on.




AMD calls are down to $3.4 as well.

Will keep AMD for one more week.



I was reading yesterday that February is not exactly bullish month historically.

So maybe cooling off bit from any buying is not bad idea.