Wiki Selling TSLA Options - Be the House

[Knightshade]

Quick tax thing-- someone a week or two ago said cap loss carryover can only be used for $3000 per year for ANY reason.

This, however, suggests 3k is the cap on using it against ordinary income-- but you can use 100% of it without limit against cap gains in future years:

Can I utilize more than $3k in capital loss carryover next year?

I had a sizable short term capital loss in 2021. I understand I can carryover $3k per year until it’s used up. However, if I have a short term capital gain in 2022 that’s in excess of $3k, can I use more of the capital loss carryover, or does that $3k cap apply no matter what?

ttlc.intuit.com

Does anyone have an authoritative source on which is correct?

 

[dl003]

Quick tax thing-- someone a week or two ago said cap loss carryover can only be used for $3000 per year for ANY reason.

This, however, suggests 3k is the cap on using it against ordinary income-- but you can use 100% of it without limit against cap gains in future years:

Can I utilize more than $3k in capital loss carryover next year?

I had a sizable short term capital loss in 2021. I understand I can carryover $3k per year until it’s used up. However, if I have a short term capital gain in 2022 that’s in excess of $3k, can I use more of the capital loss carryover, or does that $3k cap apply no matter what?

ttlc.intuit.com

Does anyone have an authoritative source on which is correct?

Think of carryover loss like a bank account.
Every year you can withdraw against it to pay for your net capital gain of that year.
Once you've no more capital gain to pay for, you can withdraw another $3k maximum to offset against your ordinary income. The leftover balance then carries over to the next year when you'll repeat these steps again until that balance runs out.
You can add to this balance by incurring further net capital losses annually.

 

[tivoboy]

Quick tax thing-- someone a week or two ago said cap loss carryover can only be used for $3000 per year for ANY reason.

This, however, suggests 3k is the cap on using it against ordinary income-- but you can use 100% of it without limit against cap gains in future years:

Can I utilize more than $3k in capital loss carryover next year?

I had a sizable short term capital loss in 2021. I understand I can carryover $3k per year until it’s used up. However, if I have a short term capital gain in 2022 that’s in excess of $3k, can I use more of the capital loss carryover, or does that $3k cap apply no matter what?

ttlc.intuit.com

Does anyone have an authoritative source on which is correct?

IF you have an annual tax year tax loss carry over, you can work it down in subsequent years by 3K$ a year. Normally, however, one has ACTUAL capital gains in a subsequent year, and so some of that gets utilized against GAINS in subsequent years. the one thing I don’t think I know is whether or not tax loss carry forward MUST be utilized in subsequent years before a tax loss carry forward can be used to reduce earned Income taxes. That would be my only question.

Tax Loss Carryforward: How They Work, Types, and Examples

A tax loss carryforward is an opportunity for a taxpayer to move a tax loss to a future time to offset a profit.

www.investopedia.com

There IS some language in the tax code that says “carried forward tax losses must be used as soon as possible”. Which leads me to think that one cannot simply carry forward losses year to year even when one has gains In a subsequent year. So for now that’s still an open question. Fortunately, I don’t often have any carry forward losses. the only tax years I ever did this was in 2008 and 2022, and it was done purposely early on in the year to bank the losses as an asset, went to cash and rebought positions later in the year or following year. Like Mar 2009. ;-)

 

[Jim Holder]

They’re trying really hard, from any angle:

https://twitter.com/x/status/1731739408649408549

 

[MikeC]

Quick tax thing-- someone a week or two ago said cap loss carryover can only be used for $3000 per year for ANY reason.

This, however, suggests 3k is the cap on using it against ordinary income-- but you can use 100% of it without limit against cap gains in future years:

Can I utilize more than $3k in capital loss carryover next year?

I had a sizable short term capital loss in 2021. I understand I can carryover $3k per year until it’s used up. However, if I have a short term capital gain in 2022 that’s in excess of $3k, can I use more of the capital loss carryover, or does that $3k cap apply no matter what?

ttlc.intuit.com

Does anyone have an authoritative source on which is correct?

Deduct $3k in income and carry the rest forward, leaving you with capital losses next year - there’s nothing about those capital losses being limited in their ability to offset capital gains.

It simply wouldnt make sense if you had $300k in capital losses one year and then could only deduct $3000/year for the next 100 years to get your money back.

 

[dl003]

They’re trying really hard, from any angle:

https://twitter.com/x/status/1731739408649408549

but try hard for what? To really take it down or to trap in more bears?

 

[SpeedyEddy]

At least a higher low to give us some backing. And the lower low was the third* one. What do you think? 231.90 at least has to hold at least to be sort of a a triple bottom

*
11/22 231.40
12/01 231.90
12/04 233.30

I am weaponed for a jump as well as a crash. later today I will spread it even more evenly and get out of -C 242.5 and 245 on a light profit.
[Edit] Ready with that, out of -C, only long options left:
TSLA NASDAQ.NMS Jan16'26 510 CALL
TSLA NASDAQ.NMS Dec29'23 320 CALL
TSLA NASDAQ.NMS Dec22'23 305 CALL
TSLA NASDAQ.NMS Dec08'23 260 CALL
TSLA NASDAQ.NMS Dec08'23 255 CALL
TSLA NASDAQ.NMS Dec08'23 215 PUT
TSLA NASDAQ.NMS Dec15'23 220 PUT
TSLA NASDAQ.NMS Dec15'23 182.5 PUT
TSLA NASDAQ.NMS Dec15'23 180 PUT
TSLA NASDAQ.NMS Dec22'23 190 PUT
Will close any on a phat rise, knowing quite some of them will expire worthless[/Edit]

 

[intelligator]

Looks like we held and kept the 4 hour candle green, rsi is in the low 50s, trended down from last week... are we running out of gas?

 

[SpeedyEddy]

Looks like we held and kept the 4 hour candle green, rsi is in the low 50s, trended down from last week... are we running out of gas?

RSI on the 4h keeps on Diverting from SP as well (RSI lower and lower, SP higher and higher)

 

[Jim Holder]

but try hard for what? To really take it down or to trap in more bears?

Help the bears/shorts or institutions to buy in low for the next run. Look at the Reuters stories just yesterday and today lol:

 

[Jim Holder]

QTA Afternoon Update

Cool how LOD held Cary's LIS (line in the sand) nearly to the penny



12/8

$245 call wall grew, not much else changed.

12/15

 

[thenewguy1979]

Tesla seem strong today vs Macro - compare to SPY/QQQ/NVDA....the dump is more Macro driven. If the news would have made a dent we would have seen a much larger drop. Last 2hrs it been back and forth at 237-238.

Doggy sense is predicting a big move soon, perhaps tommorow or Wednesday. Buckle-up.

@dl003 please share this what you see at closing. Thanks

 

[dl003]

Tesla seem strong today vs Macro - compare to SPY/QQQ/NVDA....the dump is more Macro driven. If the news would have made a dent we would have seen a much larger drop. Last 2hrs it been back and forth at 237-238.

Doggy sense is predicting a big move soon, perhaps tommorow or Wednesday. Buckle-up.

@dl003 please share this what you see at closing. Thanks

I'm in call selling mood. Cautious to the upside. If it breaks and closes the day below 234.2, I will slam it. If it holds above, I'll be cautious. Sold 270C exp next week at the high today. Now just waiting.

 

[Jim Holder]

I'm in call selling mood. Cautious to the upside. If it breaks and closes the day below 234.2, I will slam it. If it holds above, I'll be cautious. Sold 270C exp next week at the high today. Now just waiting.

Do you still have the -P220/+P225 BPS for 12/15 (or a new one)?

 

[dl003]

Do you still have the -P220/+P225 BPS for 12/15 (or a new one)?

No I closed them all at 234 on Friday.

 

[Jim Holder]

 

[BornToFly]

I'm waiting until tomorrow to roll in CCs. New China numbers and Macro rebound possible tomorrow.

 

[tivoboy]

Do you still have the -P220/+P225 BPS for 12/15 (or a new one)?

I do, but bought back half the -p220 last week when they went down about 70%. If we drift down again, I might re-sell another tranche of the -p200, and or move out another week.

 

[thenewguy1979]

I'm in call selling mood. Cautious to the upside. If it breaks and closes the day below 234.2, I will slam it. If it holds above, I'll be cautious. Sold 270C exp next week at the high today. Now just waiting.

SP stood it ground at 235.58 closing.

I have long calls and spreads going into this and next week at 245 and 250. Holding them for the bounce.
Then aiming to sell credit call spread at 260/265 (if we get near there).

As a side note - did anyone see the crazy 200% volatility with GME?

 

[Knightshade]

I closed all my CCs for this week (around 20-25% profit, -C237.50s that were some rolls from weeks ago and -C242.50 I'd opened near the morning pop to 238) on the last dip before close... too many folks seem to all be saying it kinda looks like there'll be a big jump soon that I was ok taking the day-trade demerit and if they're all wrong can always reopen something tomorrow.