tag:blogger.com,1999:blog-32639162.post3134119204330242152..comments2023-12-07T01:00:56.264-05:00Comments on My Wealth Builder: Using Call OptionsSuper Saverhttp://www.blogger.com/profile/11172939501208456194noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-32639162.post-4551711908663012152009-08-12T00:31:26.206-04:002009-08-12T00:31:26.206-04:00PFStock,
Thanks for your comment and good luck to...PFStock,<br /><br />Thanks for your comment and good luck to you also on Intel. <br /><br />In answer to your question, I treat option trades the same as stock trades. Buying options is like buying a stock. The purchase happens first, followed by a sale (or expiration). Writing options is like shorting a stock, in which the sale (or short) happens first followed by a buy (to close) or expiration. In both cases, sale price minus buy price equals the profit or loss, irrespective of the order in which they occurred. The main difference from stock trades is that sometimes an option will expire worthless, making either the final sale or final buy price equal to zero. As with stock transactions, the information is recorded on Schedule D. Hopefully, I've answered your question. If not, let me know.<br /><br />While our tax return weight was due to trading activity, it wasn't my personal trading. One of our taxable managed accounts had very high trading activity. Instead of filling out Schedule D with hundreds of trades, I chose the option of sending in the gain/loss summary from the brokerage, which the IRS accepts as a alternative to providing details. <br /><br />However, filing for an extension is not related to trading activity. I just like the extra time to make sure I do thorough job in preparing our tax return.Super Saverhttps://www.blogger.com/profile/11172939501208456194noreply@blogger.comtag:blogger.com,1999:blog-32639162.post-9052259032449824392009-08-10T17:31:29.085-04:002009-08-10T17:31:29.085-04:00First of all, I want to wish you good luck with th...First of all, I want to wish you good luck with this strategy since I also own shares of Intel. I was previously approved for options trading in my brokerage accounts, but I haven't actually executed any options trades. The reasons may not be what you would guess...<br /><br />I'm concerned about properly recording option trades on my tax return. Could you shed some light on this topic? I also noticed that you previously wrote about your tax return weighing more than a pound, and that you recently needed to file an extension for your tax return. Is this related to your trading activity?pfstockhttps://www.blogger.com/profile/16235204038486228085noreply@blogger.com