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Wiki Selling TSLA Options - Be the House

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What a roller-coaster wave the past few days:

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Hello everyone! New trader here. I have a question about selling CCs. Lets say I sold 5 CC contracts @ $1.00 which will earn me $500 but later i decide to btc my cc before the expiration date @ $.50. so in the end i will come out with $250 profit. Now when its time to pay tax, will I get taxed on $500 or $250?

Thanks in advance!
 
Hello everyone! New trader here. I have a question about selling CCs. Lets say I sold 5 CC contracts @ $1.00 which will earn me $500 but later i decide to btc my cc before the expiration date @ $.50. so in the end i will come out with $250 profit. Now when its time to pay tax, will I get taxed on $500 or $250?

Thanks in advance!


Only gains are taxed, so $250
 
Thanks for your reply! So this will still be the case if im selling CC with shares that I own correct? (aka im STO CC and not BTO)

Income or loss on CCs are recognized when the call is closed either by expiring worthless, by being closed with a closing purchase transaction, or by being assigned... with the amount of gain or loss determined at that time based on how the position ends up.
 
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Mainly green GEX is all that's left tomorrow.

Does that mean dealers fight it to keep it below $200 or that's a tinfoil theory?


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it probably doesn't matter whether >200 or <200 in the big picture, TSLA is range-bound playing the fibs

if we remove all the noise, the opportunity is there to make $7 per round-trip

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Now that February is over, lets see if March really is a better month!

Amen 🙏

Best and Worst Months for the Stock Market – Seasonal Patterns​

"March is often a turnaround period for stocks where they start to do better following a slow January and February. Yet in 2024, January and February were anything but slow. The S&P 500 is up more than 7% year to date heading into March. Historically March is also a strong month. The S&P 500 has moved higher in March 70% of the time with an average yearly gain of 1.2% over the last 20 years.

"Seasonality is essentially an average, based on history, of how the stock market tends to perform throughout the year. Averages are a guide, a tool, but don’t forecast with accuracy what will happen this year. That said, some investors and traders may use seasonal tendencies to build strategies or enhance existing ones."

S&P 500 best and worst months over the last 10 years (2014-2023):

Best Months
: March, April, May, June, July, August, October, November, December
Worst Months: January, September

"Think of seasonality as a tool, not a crystal ball. It shows historical tendencies, not what will happen this year. If the market tends to rise 80% of the time in April, that means it went up in April 16 years of out the last 20, but it may not go up this year. Even during months that have a high probability of rising, stop losses and risk control should be used, because if the price drops, we don’t know how far it will drop.


 
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For consideration:

SW: "We may have a low in place after all. It remains to be seen. But should we see a 4-5 here (as illustrated) then I could get behind a possible leading diagonal (the beginning of an impulse or a zigzag) up. The retrace down should be swift after (v) so I'm going to contain my FOMO. Note: Retraces after diagonals are unpredictable, they can be deep but do not have to be. Initially I will look for a .618 retrace of the move up from $175 low (~$194.50) but we need to see the diagonal up complete first to refine the retracement target."

A spike from here and a trapdoor beneath sounds exactly as @dl003 said earlier today. Nice to see a plan converging from different sources 👌

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(Credit: StockWaves. Consider a subscription to their service. Great team and timely information throughout the day.)
 
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