When a put or call option expires, you treat the premium payment as a short-term capital gain realized on the expiration date. This is true even if the duration of the option exceeds 12 months. For example, say you wrote a put option at $25 per share for 1,000 shares of XYZ Corp. for a $1,500 premium. This creates an obligation for you to buy 1,000 shares at a strike price of $25. Fortunately for you, the stock soars to $35, and the holder wisely allows the option to expire. You treat the premium from writing the now-expired option as a $1,500 short-term capital gain. Report it on Part I of Form 8949 as follows: Enter the option expiration date in column (c), the $1,500 as sales proceeds in column (e), “expired” in column (f). If you wrote the option in the year before it expires, there are no tax consequences in the earlier year.
For the uninitiated, lets start with some definitions. A put option gives the “holder” (the option owner) the right to sell a specified publicly traded stock at a set price (”strike price”) on or before a specified date. A call option, on the other hand, gives the holder the right to buy a security at a set price.
If you exercise a call option by buying stock from the writer at the designated price, add the option cost to the price paid for the shares. This becomes your tax basis. When you sell, you will have a short-term or long-term capital gain or loss depending on how long you hold the stock. That means that your holding period is reset when you exercise the option.
e TORO SOCIAL TRADING REVIEW
SteamVR support brings the Milky Way to life before your eyes. With real-world physics and a galaxy re-created down to the smallest detail, Elite Dangerous in virtual reality is the closest you can get to exploring far-off star systems and the surfaces of other worlds.
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Get the options volume and trading data you need to make informed decisions.
Learn what a LEAP option is and how it compares to regular-term equity options.
The Options Industry Council (OIC), an industry resource funded by OCC and the U.S. options exchanges, announced the results of a study, How Financial Advisors Use and Think About Exchange-Listed Options.
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Germany Isn’t Immune
7: Are the members kept informed well in advance of your intent when you plan to enter or exit these trades?
From: Support Subject: Re: Subscription Inquiry... To: "Shaikh Yusuf" Date: Sunday, May 16, 2010, 4:56 PM On 15 May 2010 16:29, Shaikh Yusuf wrote:
5: Do you provide SL and TP together with your trade calls and also an idea to manage these trades in case if it start going against heavily?
please help with this swiss army EA 1 reply
Hi Happy Trader, Thanks for your replies and time. Now final 2 questions to clear my mind. 1: I had been looking at your Trade Tracker. Now the dates being mentioned in these Trade Tracker represents Date of Open Trade or Date at which these trades are closed. Also could you tell me as how long do you normally keep a trade open (on an average basis). 2: I also went through comments on FPA regarding your services. While most of these comments seems to be favouring your services, I am more inclined to know if these words are true as mentioned below. "Don't want to rate as I haven't been with them too long. Signed up a while ago but although people seemed to be making pips I didn't like the trading Style, large stops was a big issue for me. I got slighly confused with his notepad of open trades where there was draw down of many 1000's pips. Not quite sure what was happening but it wasn't for me. " "Not for the faint of heart as the strategy often requires holding open positions with huge draw downs, essentially trading without stops. Recently closed a JPY trade for a small 40 pip gain but not before the trade went -600 pips" While I evaluated from these reviews is the fact that your trades can give results only after big DD and I am sure you manage to keep these trades open only because you intend to open smaller lot-size in these trades thereby applying proper MM in a way that the risks are controlled effectively. If that is so then a gain of 2000 to 3000 pips in a month with low exposure (to cover for the risks associated with bigger DD) may not justify the cause of earning potential as the traders are always exposed to the risks of higher DD (600 pips) as mentioned in one of the reviews on FPA and that does not permit to trade sufficient lot-size if not many. This was the reason why I asked you to be specific in terms of average SL that you apply to your trades and your reply to me regarding the same was not very clear, I am sorry about not understanding what your average SL on these trades are. Like in my case, I use avergae SL of 30 to 40 pips and I am specific about that. LIkewise I would be happy to know what SL I will have to encounter once I sign up for you services. Is it going to be 50 pips, 100 pips, 200 pips or no stops at all. I am asking because I want to know if I am prepared to take that kind of risk and at the same time if I am lowering my risks by taking lesser lot-size, am I really going to generate income? These are questions I must have an answer for before I commit myself to availing your services. Hope the intent of this e-mail to you is clear and you may help in resolving my confusions towards certain aspects of your services I am not able to understand. Thanks once again 'Happy' as I eagerly await your reply, Cheers, Yusuf SHAIKH --- On Sun, 5/16/10, Support wrote:
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So What Is Binary Option Trading?
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His initial plan was to take up Marketing courses at the Uni and make it BIG in the US, a dream that was never to be. The only job he could get was that of nursing older people like a house boy. At that point he had to review his plan and life’s goals. That got him to decide to return home to Kenya and try a hand at undertaking some of the opportunities he had seen before leaving.
This guy’s story starts like most others. Patrick Wainaina studied in Kenya and trained as a Mechanical Engineer which got him a job. Like many other diasporans, he was presented with the chance to go to the US. Armed with his papers and a dream to achieve the American dream, he packed his bags and moved hoping life would be better abroad.
While working at Safaricom, he was able to save Sh. 20,000 monthly for 5 years which was enough to start his dream business. At the time he was also able to secure a loan from Faulu Kenya to start on the nuts business. After a while he left Safaricom to concentrate on his business, “Jungle Nuts”, a company that sources macadamia, cashew and peanuts in Kenya and sells them abroad.
With the networks he’d built in the US and the new ones he had built in Kenya, he’s now minting millions with Jungle Nuts whose tagline is “Nuts about Nuts”. In 2011 his company was named Top 100 Mid-sized Company by Nation Media.
He strategised to work solely to save money to return home as at the time he had realised that even after his long stay abroad, he still had nothing in his name. Living on the bare minimum in order to save up his “going home” cheque, he was able to raise Sh. 300,000.
September 23, 2013 mkenyaujerumani Business, Entrepreneurs, Investment, Jobs, Life, Motivation, Studying, Tips 7
Coming back to Kenya was a challenge but his blind faith got him starting a machine business which didn’t even last. No bank was willing to give him a loan and none of his relatives and friends would agree to act as his guarantor. Discouraged but not disillusioned, he went on to look for a job instead which got him a job at Safaricom.
– User friendly interface – Customer service is responsive
Cost: Free Software: 100% Automated Max Returns: Up to 87% Minimum Deposit: $250 Countries: All nations
We cannot say at this time that this system is a scam, but we feel that there are many more trusted binary options trading software systems available. If you chose to sign with BinaDriod, we advise that you do so at your own risk and that you proceed with caution.
The system generates binary options trading signals based upon a series of complicated algorithms, according to Troy Everett. We did a little background search on the CEO and found that he is not at all who he claims to be, but is rather a paid actor from Fiverr.com, who has appeared in and done voiceover work for many other binary options systems. This leaves a bad taste in our mouths. He could simply be a figurehead for the real CEO, or he could be an actor hired in a scam video. We have reasons to doubt the sincerity of this trading system.
Beyond the Fundamental Report Cards, not much else is offered. There are no third-party research reports, no way of conducting metric comparisons against other companies, no SEC filings, and you cannot even view a simple balance sheet. With such competitive commissions, OptionsHouse must cut somewhere, and research is where the broker shaves cost.
For newer investors, there isn't a better platform on which to learn how to trade options.
Also not covered in my review commentary is OptionsHouse’s educational resources. While these resources improved in 2016 with the addition of webinars and more educational content on the company’s blog, OptionsHouse still lacks across the board. Education is limited to just options, there are no videos, organization is poor, and there is a lot left to be desired.
In late 2016, OptionsHouse released a brand-new mobile experience, completely rebuilt from the ground up. In prior years, OptionsHouse’s mobile apps suffered in the speed department because of their HTML 5 core. Thankfully, speed is no longer a worry and the broker now has a fantastic foundation to build from.
IMPORTANT NOTICE JULY 2017: OptionsHouse is now a part of E*TRADE. Please read our E*TRADE Review for a full breakdown of the combined brokerage.
OptionsHouse has proved to be a terrific home for options traders over the years. There was no better confirmation of OptionsHouse’s dominance than the firm’s acquisition by ETRADE for $750 million in July 2016.
Rental property can provide a stable source of income, but there will be maintenance requirements, and when you own real estate, you will inevitably incur unanticipated expenses. Before you buy rental property you need to calculate all the potential expenses you may incur over the expected time frame you plan to own the property. You also need to factor in vacancy rates—no property will be rented 100 percent of the time.
Bonds have quality ratings to give you an idea of the financial strength of the issuer of the bond. There are short-term, mid-term, and long-term bonds. There are also bonds with adjustable interest rates, called floating rate bonds, as well as high-yield bonds, which pay higher coupon rates but have a lower quality rating. Bonds can be purchased as a package in the form of a bond mutual fund or bond exchange-traded fund, or you can buy individual bonds.
I recommend all retirees have some a reserve account (an emergency fund). This account should not be included as an asset available to produce retirement income. It is there as a safety net; something to turn to for unforeseen expenses that may come up in retirement.
All annuities are a form of insurance rather than an investment. I include them on the best retirement investment list because their purpose is to produce income and that is what you need in retirement.
In retirement, individual bonds can be used to form a bond ladder with maturity dates set to match your future cash flow needs. This investment structure is often referred to as asset-liability matching or time-segmentation.
Retirement income funds are a specialized type of mutual fund. They automatically allocate your money across a diversified portfolio of stocks and bonds, often by owning a selection of other mutual funds. The investments are managed with the goal of producing monthly income which is distributed to you. These funds are constructed to provide an all-in-one package that is designed to accomplish a particular objective.