Jul 8, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies, Stock Trading & Taxes
Covered call writing is a short-term strategy where we sell Weekly or Monthly options to generate cash flow. It is best to use this strategy in sheltered accounts to defer or eliminate tax consequences but that is not always possible. Generally, the income from...
Mar 14, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Trading & Taxes
Whether we sell covered calls or cash-secured puts strong consideration should be given to trading in sheltered accounts whenever possible. Most, if not all, of our trades will be short-term in nature (less than one year) and therefore will be taxed at the ordinary...
Jul 28, 2012 | Options Calculations
Options calculations are critical to maximizing covered call returns. The Elite version of the Ellman Calculator is an important tool in guiding us to making the best possible investment decisions. The Basic Ellman Calculator contains the following tabs: Intro Single...
Dec 11, 2010 | Stock Trading & Taxes
Tax Time Is Upon Us First, I strongly urge all BCI members to download IRS Publication 550, Investment Income and Expenses, from the Internal Revenue Service website, at: http://www.irs.gov/pub/irs-pdf/p550.pdf. You will recognize much of the following information...