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    Selling covered calls on low cost basis stocks

    Ahhh! One day settlement (the light goes on) Mark, Thank you very much for that information Tom
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    Selling covered calls on low cost basis stocks

    Schwab has a counterpart to IB liquidate last and it does apply to assignments. Unfortunately there is no lag time between an assignment notice and the assignment to purchase subsititute shares at a higher cost basis. Spreads do not seem to qualify. The tax impact for collars can be...
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    Selling covered calls on low cost basis stocks

    If an investor holds a stock with a low (or unknown) tax basis, the assignment of these shares may be very very costly, if the stock is held in a taxable account because the assignment is a taxable sale. Is there any way an investor can offer substitute stock, perhaps through options, and...
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    Debit Spreads (NO margin required)

    You can make 5 bucks from that trade. Your risk is the net premium If you get direction and time right you can make money. IMHO there is a better risk reward than a credit spread, based on max risk/reward fo ATM or OTm spreads. If volatility and time decay are high, credit spreads may me...
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    Barrick / Gold stocks

    May retrace to 50dayMA Abx broke the 12 day MA, It has been very overbought. Lets see if it holds at the 50 day first
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    1/4% Tax on all stock trades pushed in NY Times today

    I would not be surprised if the bill is watered down, or retirement accounts may have some sort of exemptions, or perhaps the Long term capital gains may be revised to include a credit for the stock transaction tax, but yes I do agree this will be tax on 401ks as well. In the past,people did not...
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    1/4% Tax on all stock trades pushed in NY Times today

    So it puts the business back where it was 30 ago before the "Johnny..Time to rub the bunyons" commercials. Volume used to be a few hundred thousand shares a day, now it is billions. People used to buy stocks as an investment, and even some mutual funds used to charge 8-10% loads. With...
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    1/4% Tax on all stock trades pushed in NY Times today

    Long term investors most certainly can get out of this. If yo trade you pay the tax at the source. You get a credit on you tax return for tax you paid if your trades do not exceed x per year. The broker simply reports this on your 1099 and it is matched at the service center. That will reduce...
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    What goes up in crash, de/inflation, and depression?

    Centerfire ammo 9mm, .223 expensive and u will be on a waiting list to get Many truckers are now armed .22 and most SGN ammo is good for hunting, do not know the availability. Physical gold has been hard to get for awhile, but you do need enough to bribe the border guards:) MY LIST...
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    A0L will trade again

    I remember seeing the screenshot of Steve Case and the Time Warner dude holding their hands high above their heads in victory shortly after their merger, as everybody in the audience was cheering. CNBC David Faker reported on the merger with intensity, pumping the new combined company daily...
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    So it finally happened.

    I am finding that out. Although working with options has made me a much better trader.
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    What happens to my GTC coverd call order if stock gaps up?

    Why would you even want to sell calls on this stock??
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    Where to find info about using options to reduce exposure?

    I now understand the volatility part of this. My original calculations failed to include the net premium earned on the put spread, and i was thinking out of the money spread, and that is the mistake I made. The equivalents I used SPY collar, spy @107.13, sell Dec 112 call, buy Dec 102...
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    Where to find info about using options to reduce exposure?

    No, I am not concerned with a couple of pennies, or a few dollars. My original concern was more with the effect of changes in volatility, since the amount of money committed to the long ITM call is different than the amount of money commited to the put in the married put senario. In the...
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    Making 1%/week selling covered calls

    If you are thinking BAC may go down, then maybe short the stock and sell puts.
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    Where to find info about using options to reduce exposure?

    That is what I did, and I was expecting the horizontal lines. The calculated amounts were all linear, and most pretty close to zero, so the answer may be the graph just does not present things clearly, or I am looking at it wrong. Ill look around and try some calculators online, maybe cboe, oic...
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    Where to find info about using options to reduce exposure?

    Spin, The graph shows everything from a smile to a upward sloping line at diff. dates. The PL calcs are the same at each price level, but vary from +8 to -60 if I move the dates, maybe just the estimation factor??
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    Where to find info about using options to reduce exposure?

    I am trying to find the holes in the equivalent positions, so I did some homework. I took GRMN stock, trading at 28.14 intraday and used Scottrade Optionfirst's PL calculator to calculate comparative values at various points from inception to expiration, and finally the equivalent call...
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    Where to find info about using options to reduce exposure?

    How about buying a put Buy Stock xyz at 50$ Buy xyz Dec 45 put for $1.50 Risk is reduced from 50$ to 6.50$ until expiry upside ?? stock does not expire $5 call may change due to other factors than direction, volatility, theta, and then slippage. CBOE.com is a good source...
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