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Yes, but I use a partnership not an LLC myself so what I do doesn’t apply to your question, but an LLC is a pass through entity where all your income or gains are passed directly to the members of the LLC per the operating agreement (earned income passes as earned income, capital gains pass...

Here are the 16 possibilities that SPAN runs to find your maintenance margin: http://ibkb.interactivebrokers.com/node/563 It is no that hard to estimate SPAN margin if you know what you are doing, but you have to be aware that IB often imposes its own additional risk margin on top of that...

Bob, I am not really sure what you are asking but it seems like I keep saying the same thing over and over. Capital gains are not subject to SE tax, period, end of statement. If you do something, like become a member of an exchange or choose to pay yourself a salary through an entity you...

I don’t use MTM, and it adds a level of complexity where you really need expert assistance, but to answer your question: From http://fairmark.com/traders/mtmacc.htm “Ordinary income and loss. If you make the mark-to-market election, your trading gains and losses are converted to...

If you don’t like the idea for reporting your gains as anyone would and then taking your expenses on schedule C (with 0 income on that C) then you might want to run for president and disband the IRS since that is quite specifically what they tell traders, who trade for a living by their...

Income from an LLC or partnership you set up will simply flow through to your personal taxes. My trading entity files a tax return, but does not actually pay the taxes, all the gains (or losses) and expenses are passed through via a K1 to your personal tax return. Your legitimate trading...

For the eight thousandth time, capital gains are not subject to self employment taxes. For some traders, like members of an exchange or some who form entities and choose to pay themselves a salary, their capital gains are treated as income and therefore taxable as such including self employment...

These are two of my posts from a previous thread: Thinkorswim’s thinkback option data is a complete joke. There are so many days missing, data duplicated over multiple days by mistake, and just a lot of random strikes missing from random days it makes it completely useless for anyone...

I must admit that zillions is a lot. I assume there are a few people here that have traded a lot more than me and I was doing 100k contracts a month for some time, so I guess my opinion doesn’t count since I have not traded enough over the last 21 years. Having worked on two floors I can say...

Mizhael, the way you phrase your questions makes me wonder how much real life option trading you have done. As a former market maker and then firm trader that did over 100k options a month, I still don’t think I know a lot about options. There is so much to know and so many possibilities and...

Look at SPX for 9-23-03, 7-5-05 through 7-13-05, and 12-27-05 the data is missing, they don’t have it. Look at the top of the screen it says “No Data” and they just fill in the previous day’s data so if you aren’t paying attention you will use fake data and not realize it. And on...

Thinkorswim’s thinkback option data is a complete joke. There are so many days missing, data duplicated over multiple days by mistake, and just a lot of random strikes missing from random days it makes it completely useless for anyone serious about back testing options. If you are just doing...

In the live thinkorswim account the quotes are a little slow, as in not tick for tick and not very fast, but they are not bad. The charts on the other hand are terribly slow whenever the market moves at all. You will see the quotes update up to 10 times without one change in the chart. There...

1920x1200 is definitely better than 1920*1080 for most uses, but the manufactures have figured out that people are stupid and think that “full HD” is better when it is obviously worse resolution by over 11%. There are a number of choices for 24” at 1920x1200 but it all depends on your...

I can confirm the information so far from the1, you need to notify the NFA if you are going to have an exempt commodity pool and you are required to do a few things, like give them a copy of the monthly futures statement for the account. You are exempt from full registration, but you are in no...

There is a surprising lack of basic options knowledge here. When referring to the SPY, an assignment is a good thing if you are long a vertical put spread, as the OP claims he was. You get assigned on your short puts so you are now long SPY shares and still have your long puts, which means you...

As someone who knows a little bit about options, I would have to agree with others in saying that you should be able to win your arbitration case against IB. I have no doubt they will tell you to screw off, but they are not the ones who pass judgment in arbitration. If things are as you...

Immediate risk with an option trade is delta, so if the mm sells 10 calls to you that have a .30 delta then he will immediately buy 300 of the underlying to be delta neutral. It is his job to manage his position to not have any of his greeks too far out of line. The best way I found to make...

Seems to be a lot of analogies here, but I will try some basic info. I was an options market maker years ago, so I am guessing things have changed some but the basic function remains the same. Each exchange has a trading floor that has many pits. Each pit has anything from a handful of...

1080 held.