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Riskfree, I think that you're getting lost in theoretical possibility versus practical reality with a touch of extenuating circumstance (g). Here's my take on your scenario... In order for the put's value to approach the value of the strike, volatility must go up into the 1000's. That's...

Avoiding mamrgin won't prevent the OP from being labeled a pattern day trader. If he makes more than 3 day trades within five business days, he's a PDT and must mmaintain $25G in his account... unless the number of day trades is 6% or less of total trades for the five business day period. So...

At this pont, I have no clue. The OP started 2 chains and it became clear that it was unclear what his positions and execution dates were.

I read them in the Bernie made off with my money prospectus

Ehhhh, that's too bad. He was entertaining.

Noob, it's nothing exotic. It's the mirror image of a covered call except that your outlook is neutal to bearish instead of neutral to bullish. Same risk and reward spectrum, just in opposite directions.

LOL. Bearish strategies perform consistently well in a bear market and vicey versy. BTW, where's Comrade Battie these days? Did he get deported to Canuckia? Oops, already did that...

In order to determine if you have wash sales, you need to compare the dates of the transactions that are similar positions to those where your incurred losses. In general you have a wash sale if you sell stock at a loss, and buy substantially identical securities within 30 days before or after...

The cost of your calls plus the current profit is equal to the cost of taking the position today. So while you may choose not to believe that it's equivalent to taking a new position at the current price, it is. It's the same dollar risk either way, going forward. If you would not have...

Just read everything that you can get your hands on. Absorb what you can. Don't worry about the rest. In time, it will make sense if you put the effort in.

That's the understatement of the year. The wash sale violation wouldn't be such a hassle if the entire loss was moved forward to the next year. But if you trade repeatedly and in different lot sizes, you can end up having that initial wash sale contaminate many subsequent trades. It's a...

In terms of timing, the wash sale covers 30 days before and 30 days after the loss is realized.

I wouldn't take a directional move until I saw the reaction to the news but for a noob today, it could be really dumb or a really clever move :) Or in it's perverse way, the market could go nowhere. Just remember that half of the people that you know are below average :)

FWIW, one chain for this would be a lot easier... It's a wash sale

You give peeps 13 minutes to respond? LOLOL As with many IRS positions, the ITM rule isn't precisely defined as to when it's deep enough in the money for the rule to apply. The rule applies if when you sell it, there's not much chance that it will expire. I have no clue how dividends...

A non pro answer: Since you didn't mention shares, I assume that you sold naked calls initially. When those were assigned, that meant that you ended with short stock that you closed for a 3% loss. If you then sold an equiv amount of at or ITM puts WITHIN 30 days of the realized loss, that...

With new programs, RTFM is a problem for me :) But I did so and discovered that I can export the reports from my trading/tax program and import them into either Turbo Tax or Tax Cut and then be able to file electronically as suggested by you and a another poster. If possible, I'd still like...

That looks like a possibility. I registered and now the only catch is that I have to figure out if I can upload and attach my Sched D. Thanks for the help. I doubt that Turbo Tax would be able to handle my accounting issues. Even if it could, I purchased another Sched D tax prep program that...

Because I once had a kidney stone, as advised, I drink 2+ quarts of water a day. What struck a chord with me was that when I get into a rhythm during a hectic trading day, I don't drink a thing before 4 PM so I DON'T have to leave the computer :O)

You are correct on both accounts. You have limited your potential profits and you have executed good money management, Don't second guess yourself. You've booked a profit and you are now playing with OPM (other people's money). In reality it's your profit that you're risking but let's call...