SPX Credit Spread Trader

[RichardRimes]

So where do i get to say Yea! He's baaaaack!

 

[riskarb]

Quote from DonnaV:

yeah! and its the sweet wine...not vodka tonic's talking

LMAO, you GO girlfriend!

Downing the Riesling?

 

[IV_Trader]

Quote from riskarb:

Calculon was too verbose and pedantic -- he's sleeping with the fishes.

It's a shame , I would love to see heated option's discussion between him and Riskarb ; I'm sure that the rest of us will understand what they are talking about, lolol

 

[RichardRimes]

Quote from riskarb:

LMAO, you GO girlfriend!

Downing the Riesling?

actually the vinyards of Salida calling....

edit,,, I do soooo love that you are back.. thx barron or Baron or whatever....

 

[Prevail]

Quote from DonnaV:



edit.. thx barron or Baron or whatever....

smart business decision if you ask me.

 

[andysmith]

Coach (and everyone else),

Now that tax season is (almost) over, I don't recall anyone posting about applying Section 1256 rules to SPX credit spreads... Does that mean that most folks paid the full short-term rate on their gains (instead of the advantageous 60%/40% rate)? How do you handle your taxes?

Also, for next year, I'd like to automate my taxes. I used GainsKeeper this year for my OX account (where I have no 1256 trades) because they built it into the website. But if I had 1256 type trades in the OX account, would GK know how to deal with them or would they be treated as regular equity trades?

[EDIT: If you hedge your spreads with SPY, then is it true that you have a "mixed straddle" instead of a straight 1256 position, and the tax treatment becomes really complex?]

 

[skanan]

Mo,

Thanks! You are always very helpful and provide clear explanation. How about 30d and 60d ? Does that mean the current month and next month expiration ?

Quote from momoneythansens:

Nick,

A simplistic answer: think vertical strips.

Each strip representing the volatility of an option series (single strike with a same expiration)

 

[gatorplease]

Quote from andysmith:

Coach (and everyone else),

Now that tax season is (almost) over, I don't recall anyone posting about applying Section 1256 rules to SPX credit spreads... Does that mean that most folks paid the full short-term rate on their gains (instead of the advantageous 60%/40% rate)? How do you handle your taxes?

Also, for next year, I'd like to automate my taxes. I used GainsKeeper this year for my OX account (where I have no 1256 trades) because they built it into the website. But if I had 1256 type trades in the OX account, would GK know how to deal with them or would they be treated as regular equity trades?

[EDIT: If you hedge your spreads with SPY, then is it true that you have a "mixed straddle" instead of a straight 1256 position, and the tax treatment becomes really complex?]

What's Gainskeeper? I use a spreadsheet for trades by traders accounting. Nice spreadsheet but have to manually enter each leg of each trade. Can't import into it. Can you do that with Gainskeeper.

Is there a website.

 

[nlslax]

Quote from gatorplease:

What's Gainskeeper?
Is there a website.

Duh...
Plug "gainskeeper" into any Search engine and see for yourself.

 

[Cache Landing]

Quote from andysmith:



[EDIT: If you hedge your spreads with SPY, then is it true that you have a "mixed straddle" instead of a straight 1256 position, and the tax treatment becomes really complex?]

As far as I know, yes that is a mixed position. Although many people like to argue that ETFs should receive 1256 treatment, I am fairly posistive that the decision has been made against it. I think it mostly had to do with indices being M2M whether you make the election or not, whereas ETFs are not. But I'm not a CPA, so don't quote me on that.