SPX Credit Spread Trader

Cache Landing · Apr 16, 2006

Quote from riskarb:

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

'Tis but thy name that is my enemy;--
Thou art thyself, though not a CALCULON.
What's CALCULON? It is nor hand, nor foot,
Nor arm, nor face, nor any other part
Belonging to a man. O, be some other name!
What's in a name? that which we call a rose
By any other name would smell as sweet;
So RISKARB would, were he not RISKARB call'd,
Retain that dear perfection which he owes
Without that title.'

Hahahaha

andysmith · Apr 16, 2006

Cache,

Yes, my understanding is also that ETFs are not 1256... pity.

A couple of questions/claifications: all 1256 instruments (futures, options on futures, cash settled indices, options on cash settled indices) get 1256 treatment (i.e. 60/40 goodness along with M2M)... and there is no choice. Is that right?

Separate for this of course, is the hole M2M election which would subject to the entire portfolio -- 1256 and all else -- to M2M treatment. And you'd lose cap loss carry-forward and 60/40 treatment.... sound right?

Quote from Cache Landing:

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.

Cache Landing · Apr 16, 2006

Quote from andysmith:

Cache,

Yes, my understanding is also that ETFs are not 1256... pity.

A couple of questions/claifications: all 1256 instruments (futures, options on futures, cash settled indices, options on cash settled indices) get 1256 treatment (i.e. 60/40 goodness along with M2M)... and there is no choice. Is that right?

Separate for this of course, is the hole M2M election which would subject to the entire portfolio -- 1256 and all else -- to M2M treatment. And you'd lose cap loss carry-forward and 60/40 treatment.... sound right?

Yep... Probs not a good idea to make the election if you only trade a cash settled index.

riskarb · Apr 16, 2006

Quote from Cache Landing:

'Tis but thy name that is my enemy;--
Thou art thyself, though not a CALCULON.
What's CALCULON? It is nor hand, nor foot,
Nor arm, nor face, nor any other part
Belonging to a man. O, be some other name!
What's in a name? that which we call a rose
By any other name would smell as sweet;
So RISKARB would, were he not RISKARB call'd,
Retain that dear perfection which he owes
Without that title.'

Hahahaha

Yesssss, Juliet.

ChrisM · Apr 16, 2006

Quote from riskarb:

Yesssss, Juliet.

Risk ?

Is that you ? If so, we have to get couple drinks to celebrate this.

rdemyan · Apr 16, 2006

I hope somebody is out there who can HELP!!!!

I shouldn't have waited so long to do my taxes, but....

2005 is the first year I started trading ICs and so there are a ton of individual transactions.

There is a continuation sheet for Schedule D call D-1. Can I substitute a spreadsheet for it. Please say yes.

Thanks.

momoneythansens · Apr 16, 2006

NP.

Yes, depending on context, d=days or d=delta.

Quote from 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 ?

RichardRimes · Apr 16, 2006

Quote from rdemyan:

I hope somebody is out there who can HELP!!!!

I shouldn't have waited so long to do my taxes, but....

2005 is the first year I started trading ICs and so there are a ton of individual transactions.

There is a continuation sheet for Schedule D call D-1. Can I substitute a spreadsheet for it. Please say yes.

Thanks.

yes....attach your spreadsheet to the end of return as a "statement" and write "see statement" on the part of sch D where you would make your entries. Make life easy on yourself and if IRS doesn't like it they will let you know...but they usually will accept it.

RichardRimes · Apr 16, 2006

PS
the most important entries on the Sc D is line 3 and 10...MAKE SURE those two numbers add up to or more than the total amts reported by your various brokers 1099's

rdemyan · Apr 16, 2006

Thanks, Donna, you're a peach!

Do you know if OX has a tax worksheet like the one in ToS? I'm searching through their website and I can't find one. I have found a spreadsheet that can be downloaded but it lists each transaction (buy and sell) separately. If I use this I'll have to manually wade through the spreadsheet to put the buy and sell numbers on one row for each option leg. The ToS worksheet already lists the transactions the way that Schedule D wants to see them.

Quote from DonnaV:

PS
the most important entries on the Sc D is line 3 and 10...MAKE SURE those two numbers add up to or more than the total amts reported by your various brokers 1099's