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Michael, sorry it was Nikko who asked whether I consider carrying costs. Regarding Parity...here is an actual quote within the last 20 minutes: Underlying: AGIX - Current Price: $10.33 $10C: Bid $1.10; Extrinsic Value of Bid: $ .77; IV of Bid: 115.61 $10P: Bid $1.05; Extrinsic...

Michael, the answer is Yes...I consider carrying cost in that when I calculate my return on investment on my covered calls I "annualize" the profit percentage. Donahuedc, I do have a simulator program. With my covered call writes on low priced stocks, I'm happy with the 8 to 12% monthly...

Hi Michael. Yes, for purposes of my academic question, I am comparing same strike Call and Put. I would be interested in your reason for a NO answer. 4Q

Nikko, my statement you quoted was made in the context that I only write covered calls on stocks trading in the $10 range, and only At The Money Calls. The party on the other side of the Call, would have unlimited upside potential. On the other hand, a person purchasing a Put would have...

Donnahuedc, I agree with the synthetic equivalence. But the initial posting in this thread was asking for covered call finding sources. I merely offered an alternative to paying for such information. But since you brought up the synthetic equivalence, let's get into the question of which...

Why look for a service? Be your own service and look for the following situations: 1) A high IV skew in either the current or next succeeding month. (This is the most important criteria. It's great to sell Calls to people who don't know they're overpaying.) 2) A low priced stock (7-15 is...

The German word for account number is: kontonummer. This is about the extent of my knowledge of German.

SSS, the term "investment gains" was my choice of words, meaning gains from securities trades other than trades in a trade or business. Sorry for the misunderstanding. As other postings which followed mine have accurately stated...as a non US citizen residing in a foreign country, you do not...

Sbelmont, I believe I answered the question above. Is there anything specific that I can clarify for you? 4Q

Not exactly clear as to what your facts are. Nevertheless, the US does not tax nonresident aliens who are not engaged in US trade or business, on investment gains. 4Q

Warren Edward Buffett

Nkhoi, with all of my clilents who have any investment interest expense, I always attach a Form 4952, whether required or not. The reason is that the investment interest expense which is disallowed due to the limitation, is a carryforward to the next taxable year. The Form 4952 helps to keep...

Scntaxpro, capital investment losses would be considered only to the extent of capital investment gains. The various lines in #4 are only for the purpose of computing your "net investment income", because investment interest expense is only deductible to the extent of net investment income...

No, both lines 4d and 4e would be zero. Therefore, the $3,000 net capital loss would NOT reduce your net investment income for purposes of Form 4972. Rarely, if ever will lines 4d and 4e be different. I have unsuccessfully attempted to find a situation where they are different. 4Q

There is no authority in the tax code for the IRS to require broker reporting on purchases. Hence, only stock sales are subject to broker reporting. So, the question then becomes, why aren't options sales reported? I guess that several years ago someone in Treasury made a decision that since...

What are some of the exit strategies when the Deep In the Money vertical spreads go against you?

Well, Feta is also not in the Greek alphabet. But it sure adds taste to a Greek salad. 4Q

At the very minimum you have to break out the short term and long term portions of the gain. 4Q

The term "connected with a US trade or business" was just a caveat inserted by me. In other words, let's suppose that even though you are a nonresident alien, that you were the owner or otherwise involved with the operation of a trade or business in the US. If that business received income...

OK, it works this way. The LLC is taxed as a Partnership. As such it files a Partnership Return (Form 1065). As you said you get a K-1. Your Schedule K-1 will show all kinds of mumbo jumbo. Let's discuss three classifications: 1. Securities gains and losses: Not taxable in the US if...