As I understand it, you are taxed as earned income on the price at execution. Further appreciation is taxed as capital gains. Not sure how AMT factors in, but I jnow it does.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
As a TSLA junkie I’ve never really traded SPY puts or calls much until recently (hold the laughing).
What parameters do you look at to know when to bail from a put position, or close for profit? If it’s a hard rule of like manual stop loss @~10%, then with volatility that could be easily triggered and then passed right back through again, causing unnecessary loss. Too loose a rule (25%) may be same issue.
I bought a handful of puts that looked cheap at $530 (recency bias):
+P510 7/19/24 @2.85 (now down 30%)
+P505 6/21/23 @0.75 (now down 40%)
It is a small amount and not a loss to really worry about. But good learning opportunity for managing such positions.
So how do you guys decide when to stop out, or when to just hold for a retrace. In this case say to 520-516-504, or even just 528, etc.
I suck at knowing when to kill off a position and end up with a limp contract and lost $$.
TIA
What parameters do you look at to know when to bail from a put position, or close for profit? If it’s a hard rule of like manual stop loss @~10%, then with volatility that could be easily triggered and then passed right back through again, causing unnecessary loss. Too loose a rule (25%) may be same issue.
I bought a handful of puts that looked cheap at $530 (recency bias):
+P510 7/19/24 @2.85 (now down 30%)
+P505 6/21/23 @0.75 (now down 40%)
It is a small amount and not a loss to really worry about. But good learning opportunity for managing such positions.
So how do you guys decide when to stop out, or when to just hold for a retrace. In this case say to 520-516-504, or even just 528, etc.
I suck at knowing when to kill off a position and end up with a limp contract and lost $$.
TIA
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That's correct. Overall, if one will be in the highest tax bracket regardless, they are better off executing their options at as high a stock price as possible (assuming the stock doesn't lose value before sale).
If so this strengthens my question, does the board member think this is the highest the stock will be for the near future, at least until 7/17 when his option exercise expires.
Shrug, but isn't the no-trading period from EOQ to earnings rapidly approaching?
The capital gain part matters only if they think the stock WILL appreciate from the date of exercising. Its contradictory to want to maximize your cost basis for potential profit if you refuse to sell while knowing it will go down from here. So, lets see if he sells or holds.
Thanks. I thought the filing means that he exercised and sold. Didn’t realize it could mean he just exercised the options but still holding the shares, which seems to be the case here. If so my question was premature.
The MM's are working hard for Friday.
@Jim Holder , I do not have any special parameters on SPY, as I just place either Call or Puts based on the direction of the market. I recently placed a few Calls as I keep reading that the SPY will go to xxxx by the end of June based on Possible interest rate declines and overall positive technicals. Why did you place Puts, as we have the opposite placements. Let me also state I have no insights or have been better than 53% on my “wins” placing Calls or Puts, I just try to listen and read different analyst thoughts and overall market economics.
Bummer. My expectation that NVDA, with the upcoming stock split, would go up even more has been materialising. I acted on it last week by buying call spreads 1250-1300 when the stock was at 1150. I got stopped out at 1085. And now we're already over 1250 in pre-market. It sucks to make the right call and still get the short end of the stick.
Yeah, I was almost at my cash-out point, if he'd have waited a week, probably would have hit it - FOMO on the stock was crazy at that moment and he killed it dead
agreed- i did a bit better, doubling down when you got stopped out. sold on tuesday when nvda was flat around 1050. made a small profit, would've been 10x profit yesterday, and likely higher today. oh well.. DBG and all that - its better than a poke in the eye
thenewguy1979
"The" Dog
Everyone and their moms are buying NVDA. Up $22 PM. 1300 should be insight today.
ECB cut rates. Job Market expected to cool down with tommorow unemployment report. Signs are pointing to a green closing this week.
ECB cut rates. Job Market expected to cool down with tommorow unemployment report. Signs are pointing to a green closing this week.
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$175.20 is my prediction for TSLA at Friday close, NFA!!
thenewguy1979
"The" Dog
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