November 2, 2008
Trading Puts and Calls?
kristin asked:
Okay, so can you buy an option (either a put or call) and have no actual stock in that option, then wait till someone with stock needs to purchase your option in a hurry ro save their butt. Obviously, you would have to anticipate the stock in which you bought the option to either rise or fall to put stcok holders in a panic in order for them to pay you for your option. I had a classmate in finance that was making an average of $2000/day but had to slow down b/c it was too stressful and time consuming. But anyway, can you be the ‘middle man’ and just hold on to these options untill someone is willing to pay you fro them. Then that person would have to exercise that option with the Original writer (the person that I would have bought it from). Is this scenero realistic??
Okay, so can you buy an option (either a put or call) and have no actual stock in that option, then wait till someone with stock needs to purchase your option in a hurry ro save their butt. Obviously, you would have to anticipate the stock in which you bought the option to either rise or fall to put stcok holders in a panic in order for them to pay you for your option. I had a classmate in finance that was making an average of $2000/day but had to slow down b/c it was too stressful and time consuming. But anyway, can you be the ‘middle man’ and just hold on to these options untill someone is willing to pay you fro them. Then that person would have to exercise that option with the Original writer (the person that I would have bought it from). Is this scenero realistic??
Filed under Investing by Administrator
Schaeffers posted video:
Determine your option’s chances of finishing in profitable territory by checking out this primer on delta.
Filed under People by Administrator
November 1, 2008
How does options trading (buy sell put/call) reported in income tax?
moezik asked:
I started trading call & put options in 2007 and had no clue how to do the tax on that. Turbotax provided guidelines on reporting the stock sales vs. baseline, but no topics about options.
I only receive Schedule D from my broker, which has a note “non governmental document, only FYI”. Does this mean I don’t need to report my options trading? If I need to, how do I do it? The TurboTax only prompts any income that has 1099, not Schedule D.
I started trading call & put options in 2007 and had no clue how to do the tax on that. Turbotax provided guidelines on reporting the stock sales vs. baseline, but no topics about options.
I only receive Schedule D from my broker, which has a note “non governmental document, only FYI”. Does this mean I don’t need to report my options trading? If I need to, how do I do it? The TurboTax only prompts any income that has 1099, not Schedule D.
Filed under Investing by Administrator
skahhh asked:
and or do they short or buy puts and calls? What is the defined rate and trading strategy of a day trader? Do they look for news or how fast a stock is rising? What?
and or do they short or buy puts and calls? What is the defined rate and trading strategy of a day trader? Do they look for news or how fast a stock is rising? What?
Filed under Investing by Administrator
Akshat K asked:
I have been reading a few things online but they dont make sense. Can someone please explain everything about option trades to me?
I have been reading a few things online but they dont make sense. Can someone please explain everything about option trades to me?
Call option and Put option in specific.
Filed under Investing by Administrator
mimi asked:
I think I understand the basics of option trading like calls and puts. What I need help is why an option May put has a strike price of 55 when it’s underlying stock is at 52.03 in Feb? Isn’t the put for buying it down?
I think I understand the basics of option trading like calls and puts. What I need help is why an option May put has a strike price of 55 when it’s underlying stock is at 52.03 in Feb? Isn’t the put for buying it down?
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finander asked:
can anyone tell me what is the requirement for trading naked call and puts, covered call, and simply call and put
can anyone tell me what is the requirement for trading naked call and puts, covered call, and simply call and put
Filed under Investing by Administrator