Wiki Selling TSLA Options - Be the House

[LightngMcQueen]

Anyone here have experience setting up a holding company to do options trading?

me --> corp --> LP managing partner --> holdco
son --> corp --> LP researcher --> holdco
daughter --> corp --> LP secretary --> holdco
etc...

I assume corp would be invoicing LP for services, ie son-corp would invoice LP for "researcher" services.

Again not an expert, but I suspect CRA might find an issue with large amounts LP pays for to corps for services, for example if son-corp would invoice LP for 300k/yr research services performed by a rather young person. It would be good to ask advisors how they are planning to tackle that.

 

[traxila]

This would bode well for tomorrow not to be a bloodbath opening. Might even go up!

‘Encouraging’ early feedback on Omicron severity: Dr Fauci

Early data from the new variant does not indicate a great degree of danger, says top US pandemic scientist.

www.aljazeera.com

 

[BornToFly]

Here is a public link to this spreadsheet. This sheet doesn't work because it needs a ThinkOrSwim API Key. Which anyone can get, you don't need a TOS account. There is an instructions tab at the bottom that will hopefully walk you through getting it set up to work. If someone wants to refine the setup instructions, just pm your version of them to me and I will update them. They are from my notes when I first got this connector tool working. I don't have the time right now to create professional level instructions.

BPS Planner

BPS Planner Ticker,TSLA,Refresh quotes,TOS API Key,<YOUR-API-KEY-HERE> Date,12/10,DTE,-538 Short Price,$890,Strike % away Long Price,$800,Short Delta Avail Collateral,100000 % to invest,80% Ammount to use,$80,000 Fee per contract,$0.50,Calculations for looking from the short leg that I messed ar...

docs.google.com

Well, I only have an MD and a PhD, so this was over my head. I'm pretty sure I did steps 1-3 correctly. Probably 4 as well. No idea on 5 and 6....

 

[bkp_duke]

Well, I only have an MD and a PhD, so this was over my head. I'm pretty sure I did steps 1-3 correctly. Probably 4 as well. No idea on 5 and 6....

What? Another mudphud on the board? No way!

 

[Zloy]

Anyone here have experience setting up a holding company to do options trading? That is the advice i am getting from an established mid-size business advisory firm (ie like PcW, Deloitte, Ernst & Young, etc) to help reduce taxes from unregistered acct gains. All legit and legal, even setting up the holdco in tax-friendly Delaware.

The way it works is that each family member has a corporation. All corps are members of a limited partnership. The LP owns the holdco and the LP distributes gains/dividends back to the corps. I was told this is the preferred route used by the 1% to get richer.

me --> corp --> LP managing partner --> holdco
son --> corp --> LP researcher --> holdco
daughter --> corp --> LP secretary --> holdco
etc...

The full-service chartered professional accountancy does all the paperwork, file the annual taxes, etc. There will be outrageous fees, i expect, because the one-stop shop has the lawyers/accountants in one firm, but overall expenses will still be less than the current 50+% personal income tax rate. All i need to do is trade and they do all the gov't stuff.

I can imagine this is one way to reduce my taxes now, plus the benefit of slowly transferring wealth NOW to the next generation (to reduce probate fees later on). 2 birds in one stone. The kids don't have to "withdraw" from their corps; money can sit there for years until they need it (ie to buy a house).

I am not an accountant (although I did work at Big4 long ago), nor a lawyer. As it was already mentioned here, there's TOSI rules that may be applicable to your structure. As per my experience, accountants do not necessarily know the intricacies of tax laws, although they may very well know what works as far as practical side of things is concerned.

You may want to look at a prescribed interest loan (i.e. to a family trust) way of achieving your goals, and I think tax lawyers would advise the best.

The non-ccpc option, as mentioned here by st_lopes, also is very attractive on paper, and may even work in certain cases, but be ready to get scrutinized by CRA.

 

[doddiozil]

Here is a public link to this spreadsheet. This sheet doesn't work because it needs a ThinkOrSwim API Key. Which anyone can get, you don't need a TOS account. There is an instructions tab at the bottom that will hopefully walk you through getting it set up to work. If someone wants to refine the setup instructions, just pm your version of them to me and I will update them. They are from my notes when I first got this connector tool working. I don't have the time right now to create professional level instructions.

BPS Planner

BPS Planner Ticker,TSLA,Refresh quotes,TOS API Key,<YOUR-API-KEY-HERE> Date,12/10,DTE,-538 Short Price,$890,Strike % away Long Price,$800,Short Delta Avail Collateral,100000 % to invest,80% Ammount to use,$80,000 Fee per contract,$0.50,Calculations for looking from the short leg that I messed ar...

docs.google.com

Was able to set it up following your instructions. This is genius, thank you

 

[BornToFly]

Special shout out to InTheShadows for getting mine working via PM. Don't know why he needed my date of birth and SS#, and wife's bra size, but he was really helpful!

 

[InTheShadows]

Special shout out to InTheShadows for getting mine working via PM. Don't know why he needed my date of birth and SS#, and wife's bra size, but he was really helpful!

I just aspire for that amount of capital to invest. My long term planning sheet says 2024 I’ll be there. That’s with current tax rates taken out April each year assuming no deductions. A new feature I added to my workbook last weekend.

I have placed a very high value on my time. This sheet has saved me so much time with planning my next investments. If I had one or two accounts to manage it wouldn’t be as valuable but with 7 accounts. It’s a tremendous help.

It even works on iOS devices too if you have google sheets app installed.

The sheet was made with the concepts and the idea of so many people here. It’s the least I can do to share it with all of your collective ideas that have helped me to put together my trading plan and refine it.

 

[InTheShadows]

As a side note. Once that api connector is set up. The limits of what you can do with live data are limitless. All of the Greeks, volumes, pretty much every field you can display on stocks and options is available with that connector. It’s just a matter of looking at the data on the test sheet and figuring out what column the data is in that you are looking for, then putting it in the cell you want.

 

[Drezil]

Anyone here have experience setting up a holding company to do options trading? That is the advice i am getting from an established mid-size business advisory firm (ie like PcW, Deloitte, Ernst & Young, etc) to help reduce taxes from unregistered acct gains. All legit and legal, even setting up the holdco in tax-friendly Delaware.

The way it works is that each family member has a corporation. All corps are members of a limited partnership. The LP owns the holdco and the LP distributes gains/dividends back to the corps. I was told this is the preferred route used by the 1% to get richer.

me --> corp --> LP managing partner --> holdco
son --> corp --> LP researcher --> holdco
daughter --> corp --> LP secretary --> holdco
etc...

The full-service chartered professional accountancy does all the paperwork, file the annual taxes, etc. There will be outrageous fees, i expect, because the one-stop shop has the lawyers/accountants in one firm, but overall expenses will still be less than the current 50+% personal income tax rate. All i need to do is trade and they do all the gov't stuff.

I can imagine this is one way to reduce my taxes now, plus the benefit of slowly transferring wealth NOW to the next generation (to reduce probate fees later on). 2 birds in one stone. The kids don't have to "withdraw" from their corps; money can sit there for years until they need it (ie to buy a house).

Over here in Europe I founded a family foundation in Liechtenstein with a friend. That owns a company where the trading happens. Overhead: around 20k€/year, but taxes halved. But then it is company money & we will never get it. If we would pay it out normal taxes would apply. The company now buys a penthouse for my wife & me
We are then just tenants and completely dependent on our landlord (our company) for everything.. such horror!

 

[bkp_duke]

Not liking the pre-market. I rolled my 12/10 BPS's to 12/17 last week, but they are getting dangerously close to ITM now.

What's the "not advice" on this situation? Roll further? Wait and see how things go over the next week or so before considering rolling?

 

[MaxPain]

Looks like I'm going to need to do my first split roll today of my 12/10 650/995 BPS. I'm thinking 2:1 split roll because I want to improve the strike. Looking at rolling to 12/17 700/900 strikes.

 

[Yoona]

Not liking the pre-market. I rolled my 12/10 BPS's to 12/17 last week, but they are getting dangerously close to ITM now.

What's the "not advice" on this situation? Roll further? Wait and see how things go over the next week or so before considering rolling?

depends on risk tolerance

if me, i will decide this Fri or next week
- it appears to be a "sector rotation"
- there's no bad company news
- 11 DTE
- collect theta

 

[vikings123]

Not liking the pre-market. I rolled my 12/10 BPS's to 12/17 last week, but they are getting dangerously close to ITM now.

What's the "not advice" on this situation? Roll further? Wait and see how things go over the next week or so before considering rolling?

980-985 is probably the line in the sand. If that support breaks I think we roll them. I have some 900/950 BPS 12/10 in play this week so my plan is wait to see if that support breaks. I'm not doing anything until then.

I also don't plan to open any new BPS positions. If anything I will be selling some calls, for example Feb 2022 1400 call was still going for 25$ on Friday.

 

[traxila]

depends on risk tolerance

if me, i will decide this Fri or next week
- it appears to be a "sector rotation"
- there's no bad company news
- 11 DTE
- collect theta

This is the bad company news that our Hedgie friends seemed to already know about.

Exclusive: SEC probes Tesla over whistleblower claims on solar panel defects

The U.S. securities regulator has opened an investigation into Tesla Inc over a whistleblower complaint that the company failed to properly notify its shareholders and the public of fire risks associated with solar panel system defects over several years, according to a letter from the agency.

www.reuters.com

Old news in every sense and will never amount to much regardless of the two year investigation that is still ongoing.

Well, at least we know the SEC is staying consistent. Hard to imagine clearer evidence on working with shorts but whatever, nothing everyone did not already know.

 

[chiller]

I got a bit careless last week, thinking we were at the bottom (several times).
I've spent some time over the weekend looking at the charts, and I now believe we might fall down to 800.
I'm eyeing Feb '22 for rolling "far" to save my positions.

I have 1x 1090P for Dec10, which I will buy back if we get a pop. If not I'll let the time-value run down and then figure out where to roll it.

I have 2x 1050P for Dec10, which I will roll to 1x Feb '22 1000P asap, should give me a small credit (5-10).

I have 9x BPS for Dec10 1000/800, and I am thinking of moving it to Feb '22 900/700 for a premium, preferably 30, but I'll settle for a bit less.

I have 1x BPS for Dec10 990/940 that I will close ASAP.

In addition, i bought 10x Dec10 600P last week to give me some wiggle room margin-wise. I will close them out when I have sorted out this weeks positions. I might open a few new ones (below 800) if I execute the above.

 

[ABC2D]

Are we heading to fill the gap?

 

[strago13]

Rolled 12/17 950 puts -> 12/23 930 for a small credit.

This is getting excessive.

 

[OrthoSurg]

When I started trading options 1 month ago I was stressed to see the stock price $100 OTM from my strike prices. Now that my Puts are getting $50 more underwater every weekdays, I am feeling the roller coaster ride of the roll-o-thon.

I am hesitating to roll today my -p990 expiring this Friday or wait for Wednesday. I am now starting to wonder how DITM they will be by the end of the week before we rebound. If we do so.
I am learning the forever roll.

 

[traxila]

Somebody has this figured out and is making daily millions on these swings.

Not me.

Nibbling around the edges and waiting is my MO. At least until I can theoretically do this full time. Day jobs and obligations….

Hang in there guys. Be nimble and listen to the good not advice available on this fine forum.

All the best!