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Or a corporate bond ETF

In order to have a retirement plan, you must have earned income. Investment income is not earned income. So in this sense it is correct that in order to contribute to a retirement plan, the business entity must be generating compensation that is subject to social security and medicare taxes...

You are correct that when you short the stock and buy a call, you no longer have the unlimited risk associated with short stock. But I don't think any broker will reduce the margin on the short stock just because you have a long call. Even if your broker wanted to, I'm not sure US regulations...

Just to add a bit to what guru has said... When you execute a spread trade, you may be buying one leg from a guy in Singapore and selling the other leg to a guy in Boise, Idaho. It may be a spread for you, but it could be something very different for the parties taking the other side of each...

When it comes to options, Options as a Strategic Investment, by Lawrence G. McMillan, is considered a classic. If you buy it, make sure you get the most recent edition. IMHO, beginners should stay away from trading index options, and should stick with equity options or options on ETFs, which...

Anyone looked at this ETF? It uses and index called Alternative Harvest. As the stock symbol suggests, it is supposed to be about investing in cannabis businesses. And there are in fact a number of cannabis companies in the index. Most or all are Canadian. But not all the companies in the index...

Okay, I see your point, that if you are engaged primarily in short term trading of options, the taxes may take a back seat, or not be a real variable. But aren't there some folks who hold stock long term, as part of an investment portfolio, and try to make extra money by selling calls against...

There is at least one reason that someone might want to close the covered call before expiration instead of allowing it to be exercised, and then buying the stock again. Selling the stock could have adverse tax consequences. If the intent is to hold the stock long term, selling it could trigger...

We have a core portfolio that consists of exchange-traded products and bonds. Not bond funds. Not bond ETFs. Corporate bonds and municipal bonds. We also trade options. Mostly spreads with finite risk. We are approved for the highest level of option trading, including naked calls and puts. We...

So the trading strategy is very straightforward: You gotta get to know somebody over at the Department of Justice, so they can tip you off a couple days before the antitrust lawsuit is announced, and that way you can short the stock before the announcement. Okay, wait a minute... wouldn't that...

Thanks for your input. I would like to get a better understanding of your reasoning. I don't see exactly how the price of the put influences whether an early exercise takes place. My understanding is that the assignment process is random, meaning anyone holding a long 128 call that chooses to...

Schwab: TSLA 65% ETSY 50% SPY 30% K 30% EDIT: Okay, I misunderstood your question. I re-read the original post, and I see that you are asking about naked options. The data I posted above is maintenance margin for long stock.

I think the US Department of Justice is going to launch an antitrust suit and force Facebook to break up. The suit probably won't get filed before the election. And it will take well over a year, maybe even more than two years, before there is any real outcome. But the stock will probably tumble...

On Aug. 3, we put on a bull call spread in TGT: Long 126 Call (Exp 08/21) Short 128 Call (Exp 08/21) for a net debit of $0.99 At that time, the stock was trading around 128. It has since risen dramatically. As I write this, it is trading around 136. So everything looks good, right? The...

Are you referring to the initial margin requirement, the maintenance requirement, or the interest rate?