Recent content by alen

so lets say that the tax rate is 25%. excluding getting credit for ones losses, is one taxed 25% for the capital gain in each individual trade one made during the past year, or is one taxed 25% for the total capital gain over the past year?

hi. i am new to options trading, and one of the things that i know next to nothing about are the tax implications in the US. any advice would be greatly appreciated. thx.

i already have a broker account with scottrade; at first, until i have atleast 10,000 dollars, im gonna do a maximum of one trade a day.

just so u guys know, im not planning on living off my investments; this is just for a little extra money; so if i loose a lot in the beginning, or occasionally afterwards, its not such a big deal.

do you know any sites that explain how the tax is collected? thx.

when one trades options, how are the gains taxed?

well, i chose scottrade, and as well as trading online, i can trade over the phone for a fee.

i am aware of the terminology of options. when i said capped, i meant if its the kind that get exercised automatically by your broker.

how can someone tell if an option is capped or not?

im not trying to brag or anything. im just making a point. and if u must know, i started paper trading with $870; after the first week, i was down $70; now on day 11, my total $ is $1186. again, i dont mean to brag; i probably have another loss in store for me somewhere down the road; wat im...

i would not use the straddle often, since in theory, if the call premium rised, then the put premium falls, and vice versa; i would use it as a means to control risk when entering an especially speculative position.

actually, during one of my numerous paper trading sessions, i bought call options for Procter and Gamble (pg) and marvell (mrvl) that were slightly otm; these stocks were said to rise in the next few days. since they were rather cheap (around $50 a piece), i bought 4 of each; all this took place...

I have actually read about bull call spreads, bear put spreads, and just about all other spreads out there; they are too complicated for me, so i wont be trying them anytime soon. the only one that looked like something i would try is the straddle.

as far as margin goes, i wont be writing options, so that doesnt have a big impact; hedging and GREEKS, when to pull out of a losing trade and how to convert a losing trade, i need to learn; the rest i know enough of.

What you said in the first paragraph about trading options from the long side is gonna be true in my case; im not gonna short (write) options, nor am i gonna exercise them. As for the timing, im not really gonna "day trade", so the split second timing factor is at a minimum. im gonna look for...