SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Is anyone out there... lurkers included... running an investment club or non-profit group or profit group through any particular broker which they have set up? I know IB offers an advisor service and friends and family trading service, but those would all be individual accounts. We would like one master trading account.
Here's our circumstance:
Currently we all trade our indivicual accounts or trade shared accounts through Power of Attourney. We would like to open a 'master trading account, LLC' and allow investment club members to participate, 'members, LLC'. Our issue at present is the disbursement of profits from the master trading account to the members accounts.
Accountants... we need advice.
Upon receiving our K-1 statement from the broker, the master trading account would be subject to 'U-bid' tax (business tax, taxed at 35%) before the profits/losses would be distributed to the members, upon which time they would pay capital gains taxes.
So here's the dilema, is there a simple and clean way around the 'U-bid Tax'. Suggestions like - non-profit organization, or sell memberships into the master trading account, or allow the members to loan the monies to the master account at a fixed high interest rate which could be wrote off against the profits... etc.
Any help or suggestions would greatly be appreciated.
Thank,
Murray
Here's our circumstance:
Currently we all trade our indivicual accounts or trade shared accounts through Power of Attourney. We would like to open a 'master trading account, LLC' and allow investment club members to participate, 'members, LLC'. Our issue at present is the disbursement of profits from the master trading account to the members accounts.
Accountants... we need advice.
Upon receiving our K-1 statement from the broker, the master trading account would be subject to 'U-bid' tax (business tax, taxed at 35%) before the profits/losses would be distributed to the members, upon which time they would pay capital gains taxes.
So here's the dilema, is there a simple and clean way around the 'U-bid Tax'. Suggestions like - non-profit organization, or sell memberships into the master trading account, or allow the members to loan the monies to the master account at a fixed high interest rate which could be wrote off against the profits... etc.
Any help or suggestions would greatly be appreciated.
Thank,
Murray
Murray,
With LLC, I think you can use the pass-thro tax like LP, so there should be no tax for the entity, unless special regulation applies to trading business. Check with your accoutant.
This month I have experienced both vertical and diagonal. I like both. However I found diagonal is harder to get filled at mid (or a little bit lower than mid).
I have placed 1225/1200 Sep/Oct diagonal for several days but none got filled.
Yes thanks for the demo Murray. Great learning experience.
Interesting to see how with SPX moving up 15 pts (not really what you want), you're still making 15% on margin.
I could be wrong but i think theta is making you all that money without any real significant movement in the SPX. Front month Shorts decaying quicker than your back month longs. I think we've finally found a positive edge strateggy
Here's an update of my basic PUT diagonal
4 AUG ES ~ 1280
STO 1240 AUG PUT
BTO 1210 SEP PUT
MID 3.30 DEBIT
TODAY'S MID 4.10
ES ~ 1270
Profit 0.90
Good thing is when ES was moving up (1285-1290), i wasn't losing any money. Maybe just 0.05
Love these diagonals. Three cheers for Murray
Coach and others,
I use OX. I am relatively satisfied, although I would like the best possible commission structure. I trade greater than 100 contracts per month. I plan to call OX and try to negotiate a better rate. I usually use at least 10 lots, but for the times I swing trade 5 or fewer contracts, I hate to get "dinged" with the minimum 12.95.
Do any of you have any ideas about a fair per contract price? Am I trading enough contracts to get a break? I just want some advice prior to the negotiation.
thanks,
newbie
I use OX. I am relatively satisfied, although I would like the best possible commission structure. I trade greater than 100 contracts per month. I plan to call OX and try to negotiate a better rate. I usually use at least 10 lots, but for the times I swing trade 5 or fewer contracts, I hate to get "dinged" with the minimum 12.95.
Do any of you have any ideas about a fair per contract price? Am I trading enough contracts to get a break? I just want some advice prior to the negotiation.
thanks,
newbie