Recent content by Peter K

Hi, I am new to spreads, I have got one successful vertical where every leg remained OTM. But whenever I lock in a spread for analysis, the thinkorswim platform has a comment, "Max Loss: $xxx.xx (not including possible dividend risk)". I do not understand this. 1) Can a stock get assigned to...

Hi, Suppose a company is trading at $12, then I sell to open a $16 put. Does this mean the buyer can exercise his right to have me buy his stock at $16 before expiration, even if the trading price remained below $16 strike price?

I am about to start trading/investing using an online broker, I keep wondering how my taxes will be accounted for. Do traders pay on their yearly profit? or do they pay taxes on the profit of each individual trade? For example, I put $1000 in my account. -I make a trade using $500 and make a...