Comments on: Capital Gains (Losses) For Covered Call Writing In Non-Sheltered Accounts https://www.thebluecollarinvestor.com/capital-gains-losses-for-covered-call-writing-in-non-sheltrered-accounts/ Learn how to invest by selling stock options. Tue, 07 Apr 2015 12:35:39 +0000 hourly 1 By: Dennis https://www.thebluecollarinvestor.com/capital-gains-losses-for-covered-call-writing-in-non-sheltrered-accounts/#comment-22549 Tue, 07 Apr 2015 12:35:39 +0000 http://www.thebluecollarinvestor.com/?p=11516#comment-22549 In reply to Steve Zoller.

Hi Steve,
I do use margin but believe the benefits to going the IRA route might outway it. Thanks for the insight!

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By: Steve Zoller https://www.thebluecollarinvestor.com/capital-gains-losses-for-covered-call-writing-in-non-sheltrered-accounts/#comment-22543 Mon, 06 Apr 2015 19:17:00 +0000 http://www.thebluecollarinvestor.com/?p=11516#comment-22543 In reply to Dennis.

Dennis, I do all of my trading in IRA accounts. The advantage is there is nothing to do at tax time. The disadvantage is you cannot use margin. If you don’t use margin anyway, I think trading in an IRA is the best way to go. Steve

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By: Dennis https://www.thebluecollarinvestor.com/capital-gains-losses-for-covered-call-writing-in-non-sheltrered-accounts/#comment-22542 Mon, 06 Apr 2015 18:32:50 +0000 http://www.thebluecollarinvestor.com/?p=11516#comment-22542 In reply to Alan Ellman.

Many thanks Alan. I’ve got some work to do now.

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By: Alan Ellman https://www.thebluecollarinvestor.com/capital-gains-losses-for-covered-call-writing-in-non-sheltrered-accounts/#comment-22541 Mon, 06 Apr 2015 18:30:44 +0000 http://www.thebluecollarinvestor.com/?p=11516#comment-22541 In reply to Dennis.

Dennis,

Most of our members (including me) who trade in sheltered accounts use either traditional or ROTH IRA accounts. It will usually involve your broker rolling over from your current account to one of these or similar accounts. A knowledgeable tax advisor should be both instructive and helpful in finalizing your investment decisions.

Alan

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By: Dennis https://www.thebluecollarinvestor.com/capital-gains-losses-for-covered-call-writing-in-non-sheltrered-accounts/#comment-22540 Mon, 06 Apr 2015 18:16:35 +0000 http://www.thebluecollarinvestor.com/?p=11516#comment-22540 In reply to Alan Ellman.

Hi Alan,
Just left my tax preparer and after a year of covered call and now put selling I need to figure out the tax sheltered account trading. My tax preparer was hesitant to recommend a tax sheltered account strategy. I trade thru TDAmeritrade so perhaps they would be my next step, asking them? I thought I’d check here before I made the plunge into the TD help line and was ‘sold’ something I might not really need.

If you have any other guidelines available in your books or posts I’d appreciate it greatly if you could point me in that direction.

Many thanks!

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By: Alan Ellman https://www.thebluecollarinvestor.com/capital-gains-losses-for-covered-call-writing-in-non-sheltrered-accounts/#comment-22435 Sun, 22 Mar 2015 12:25:41 +0000 http://www.thebluecollarinvestor.com/?p=11516#comment-22435 In reply to Joe.

Joe,

After expiration, I calculate my portfolio value:

Value of securities held + cash on hand

If cash is added or subtracted for personal use or additional investments, this will re-set your cost basis for the following month.

Alan

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By: Joe https://www.thebluecollarinvestor.com/capital-gains-losses-for-covered-call-writing-in-non-sheltrered-accounts/#comment-22423 Sat, 21 Mar 2015 10:42:15 +0000 http://www.thebluecollarinvestor.com/?p=11516#comment-22423 In reply to Joe.

One more thing. Without options I was 5 winners and 6 losers. However, with options I was 9 winners and 2 losers. Overall it was good. However, I am still a bit disappointed on my percentage of potential premium. I feel 36% is a bit low. Joe

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