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 21, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies, Stock Trading & Taxes
In a recent article, tax implications for covered call writing was discussed. In this publication I will highlight the tax ramifications as they apply to selling put options. What is a Capital Gain? A capital gain is an increase in the value of as capital asset, such...
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...
Dec 22, 2012 | Stock Trading & Taxes
There has been a lot of hysteria and hyperbole surrounding the expiration of the Bush-era tax cuts and how it might affect dividend income. The Blue Collar Investor’s weekly list of covered call candidates often includes a number of dividend-paying stocks as shown in...
Dec 8, 2012 | Option Trading Basics, Stock Investing, Stock Option Strategies
For covered call writers the main stock option strategy is to purchase an equity specifically for the purpose of selling the corresponding call option. The investment time frame is one to two months as earnings reports will end the “run” of even the best performing...
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