SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
I sure it will be a rabbit tail speech.... nothing but fluff. Also I am looking fro strikes that should be safe for April expiration despite the comments.
For the puts I am looking at 1225, 1230 and 1235 depending on where I can get filled. As for calls, thinks look bullish right now and with the skew working against me I have not like the premiums in the call strikes at 1370 or so.
I agree with coach in that I don't want to make general comments and get someone into trouble. My main point was just that there is really only one significant disadvantage to a C-corp (the issue of double taxation). This disadvantage is non-existent for a growth company. So you need to ask yourself one main question when deciding how to setup your business.
"Is my objective growth, income, or both?"
My opinion (albeit a well founded one) is that unless my objective is SOLEY to generate income I would automatically choose a C-corp. The tax benefits to a C-corp for both large and small companies are huge!!! The only exception is that darn double taxation of dividends. For those who don't understand, this happens when a corporation pays taxes on the income and then the shareholders are taxed again on dividends received.
So if you don't plan on paying yourself dividends, then the only significant drawback to a C-corp has been eliminated. If your C-corp has a large amount of capital then you should just be able to pay yourself a large salary and eliminate the need to pay dividends for income. If your C-corp has a smaller amount of capital then there are various tax free (or tax reduced) ways of paying yourself the same amount that you would be getting from dividends. So in other words, the only big disadvantage of a C-corp is fairly easy to get around.
So if you are setting up a corp or already have one... consider the facts and not the rumors. The IRS is quicly eliminating the need for S-corps, LLCs, and LP's. But one last time, talk to a lawyer and tax professional when doing so.
[edit]
I don't want to litter coach's thread with tax/business stuff so please indicate any additional interest. Otherwise, I'll leave the topic alone.
In OX you can download trades to EXCEL like I used to do here to show the P&L of trades closed. Once you do that you can attach it to a Schedule D and submit it for tax purposes. ToS may have something similar.
NEW APRIL POSITIONS
With a bullish bias in the current SPX price charts I decided to grab some puts on this down day. With time to expiration shrinking, it was hard to get any significant premium extremely deep OTM so I went as high as I felt comfortable:
- 350 APR SPX 1235/1225 Put Spreads @ $0.35
Credit = $12,250
Margin/Risk = $337,750
Return on Risk = 3.62%
With a fed meeting next week I might add a partial hedge on any up day perhaps at 1260 strikes if they are cheap. BANANA
I wrote the word Banana so you could do a search for this later on if you forget my position.
With a bullish bias in the current SPX price charts I decided to grab some puts on this down day. With time to expiration shrinking, it was hard to get any significant premium extremely deep OTM so I went as high as I felt comfortable:
- 350 APR SPX 1235/1225 Put Spreads @ $0.35
Credit = $12,250
Margin/Risk = $337,750
Return on Risk = 3.62%
With a fed meeting next week I might add a partial hedge on any up day perhaps at 1260 strikes if they are cheap. BANANA
I wrote the word Banana so you could do a search for this later on if you forget my position.
The large account that I manage is a pension plan and all I need to report to the company's CPA is the year starting balance and ending balance and contributions made in the year. I would be only assuming that with your IRA those are the three main facts you would need to track so take those assumptions as you may 