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24,649,099 Views | 233312 Replies | Last: 2 min ago by Brian Earl Spilner
$30,000 Millionaire
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In reply to agdaddy04 • 12:48p, 2/6/21
AG
agdaddy04 said:
Oh okay. I've just never had to pay quarterly before.

Interesting about the long term and 1099-DIV. is that because most of the trades you're posting on here are in retirement accounts?


The majority of my money is in a taxable managed account that I don't touch very often. My trading accounts are taxable. I do not trade my IRAs / 401Ks, mostly because I don't have bandwidth to do it all.

For context, in 2019, the overwhelming majority of option trades I did were buy writes, covered calls, and collars. I spent 200 nights on the road that year and was not able to monitor riskier trades intra day. I'd find opportunities, set limit orders, and try to check when I could. You obviously aren't going to open active trader pro on an airplane if you value security. Selling premium was a good strategy in 2019, by the way.

2020 and 2021 have been a unique opportunity for me where I can monitor the market most of the day or I can action an alert I set right away. I can also be on discord or use Twitter. When life goes back to normal, I will not be able to be as active because most of my day will be spent in BS meetings in conference rooms that could be handled over an email or on the road for face time with customers and colleagues. In normal life, I don't even look at a computer most of the work day.

I have a big decision to make around whether or not to walk away from a great corporate career to be a full time trader. I am worried I will lose my mental edge if suddenly most of my income has to come from trading.
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agdaddy04
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In reply to $30,000 Millionaire • 12:57p, 2/6/21
AG
Makes a lot of sense, thanks. I certainly don't have the time to do a lot of active trades but trying to find a balance of what works for my schedule so I really appreciate you sharing that.
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agdaddy04
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In reply to $30,000 Millionaire • 12:58p, 2/6/21
AG
In regards to the taxable managed fund is that in a few specific mutual funds or do you mean it's a fee based company that's managing it for you?
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agdaddy04
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12:59p, 2/6/21
AG
When you sell the premium, I'm assuming that means you're having to pay taxes on that as regular income, correct?
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$30,000 Millionaire
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In reply to agdaddy04 • 1:04p, 2/6/21
AG
agdaddy04 said:
In regards to the taxable managed fund is that in a few specific mutual funds or do you mean it's a fee based company that's managing it for you?


Through fidelity. They charge a fee.
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$30,000 Millionaire
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In reply to agdaddy04 • 1:05p, 2/6/21
AG
agdaddy04 said:
When you sell the premium, I'm assuming that means you're having to pay taxes on that as regular income, correct?


Yes. It's paid for whataburger a time or two.
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OE_Ag11
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In reply to Engine10 • 1:14p, 2/6/21
AG
How far out of the money are you picking to sell the cc's? Just in general. Guess wait for a day for it to spike then find one a bit above?
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OE_Ag11
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In reply to Engine10 • 1:16p, 2/6/21
AG
Also since you are doing weekly CCs then paying attention to price so know if you need to sell out or whatever you need to do instead of the just invest and forget, look at it monthly or quarterly or even yearly like I used to.
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gougler08
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In reply to Ragoo • 1:16p, 2/6/21
AG
Ragoo said:
$30,000 Millionaire said:
You can also use your day job withholding to meet your total tax burden as well.
yep, I posted the same. Update the W-4 to remove any deductions, flip over to the back and make additional tax payments. Take away some monthly cash flow, but if that is really important probably shouldn't be short term trading.


Shell can't figure out my taxes as it is...so I always end up at least starting with a refund from the payroll side of things
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OE_Ag11
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In reply to kyledr04 • 1:16p, 2/6/21
AG
Is that the space one?
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leoj
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1:20p, 2/6/21
AG
I still have not read any comments or insights into the Republican stance on this, which I assume would be overall against, but still could lead to some continued strength in the sector on the "rumors" uptick.

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Agsrback12
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In reply to Brewmaster • 1:27p, 2/6/21
BREwmaster said:
Agsrback12 said:
Anybody looked at BLDV? If so, thoughts?
no good opinion... this is a tough one to chart really. On the hourly it has a nice rounded bottom going back a couple days, but it looks to have lifted off now. It has filled back to 2017 highs. If you are long from much lower, great! but I might not personally chase it here.


Thanks. I have owned shares for 10 years. Never amounted to anything. I log in a few weeks ago and there was volume and pretty big jump percentage wise. Owned it before it was a marijuana stock. Lol. We shall see how this goes.
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OE_Ag11
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In reply to $30,000 Millionaire • 1:27p, 2/6/21
AG
How good do they normally do? Have seen them advertise it a fair amount on the site.
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kyle field 94
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In reply to mazag08 • 1:31p, 2/6/21
AG
mazag08 said:
gougler08 said:
mazag08 said:
Has anyone followed MMP?

Sitting at $40.59, $7 below it's lowest analyst price target.

Pays a dividend of $1.0275 quarterly.. roughly 10% cash on cash at this price. And while options chain is meh, you could sell July $52.5 call for $0.50.

Granted, 4th quarter earnings were down from 2019 due to Covid and oil being down in 2020. So some risk if they don't get back to pre-Covid levels. But if they do, the dividend will likely go even higher.

I'm watching this one. Need to do more research.


Chart looks good if it holds above $40, may be a good play for my 401k with the dividend + still some upside if it can get to pre-Covid numbers at some point


Yeah this would be an IRA play for me.


Be very careful with MLPs in ira's as they can have UBTI tax issues since the mlp distributions are not taxed but instead reduce your tax basis in the asset.
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OE_Ag11
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In reply to gougler08 • 1:32p, 2/6/21
AG
gougler08 said:
$30,000 Millionaire said:
To say more, figure out what tax bracket you will be in and set aside that money. You'll want to be within 20% in the first 3 quarters - remember it's estimated. You'll want to get as close as you can for the 4Q payment for the entire year.

For those that are worried, the government penalties for under payment are not that bad and an argument can be made that you could more than make up the difference with conservative covered calls.

Personally, I try to be as close as possible to the tax law but give myself some breathing room in case I have a draw down. In most years, I'm more in the long term gain and 1099-DIV camp, and that's very predictable.


So I've always just done my own taxes since fidelity provides all the paperwork and can automatically transfer in to TurboTax...certainly agree with keeping the money to the side but I don't know if it makes a difference lying quarterly vs. just at normal times?


The Fidelity TurboTax link is nice. Had another deduction I never knew about that pulled from one of the forms.

Also if you have Fidelity, look at the bottom of your all accounts summary screen. They give me TurboTax Premier for free every year. Which is the one that handles everything but business expenses I think.
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gougler08
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In reply to OE_Ag11 • 1:48p, 2/6/21
AG
OE_Ag11 said:
gougler08 said:
$30,000 Millionaire said:
To say more, figure out what tax bracket you will be in and set aside that money. You'll want to be within 20% in the first 3 quarters - remember it's estimated. You'll want to get as close as you can for the 4Q payment for the entire year.

For those that are worried, the government penalties for under payment are not that bad and an argument can be made that you could more than make up the difference with conservative covered calls.

Personally, I try to be as close as possible to the tax law but give myself some breathing room in case I have a draw down. In most years, I'm more in the long term gain and 1099-DIV camp, and that's very predictable.


So I've always just done my own taxes since fidelity provides all the paperwork and can automatically transfer in to TurboTax...certainly agree with keeping the money to the side but I don't know if it makes a difference lying quarterly vs. just at normal times?


The Fidelity TurboTax link is nice. Had another deduction I never knew about that pulled from one of the forms.

Also if you have Fidelity, look at the bottom of your all accounts summary screen. They give me TurboTax Premier for free every year. Which is the one that handles everything but business expenses I think.


Seems they like you more than me, only $20 off
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$30,000 Millionaire
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In reply to OE_Ag11 • 1:53p, 2/6/21
AG
The wealth management / private wealth management has been good. They shill fidelity products, obviously, but they're good at bringing ideas. The biggest thing is access to alternative investments like private equity or hedge funds. I normally pass, but they're out there.

There are certain things I am just not as knowledgeable on like how to buy bonds, and it helps to have someone to talk with.

These services are all what you make of them, though.
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OE_Ag11
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In reply to gougler08 • 1:54p, 2/6/21
AG
Even in the big tile on the summary page? On the taxpage I think it said 20 but the tile on the summary that pops up it was full. Who knows, cause it does vary sometimes I have noticed on mine as well.
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RigsTx
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2:05p, 2/6/21
AG
Haven't seen this addressed on CLOV, but I was doing some reading this morning and saw that they have had several Class Action Lawsuits filed yesterday and today. Is there any concern on that?

I'm fairly new to this so don't know if this is commonplace or not.
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Engine10
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In reply to OE_Ag11 • 2:06p, 2/6/21
AG
OE_Ag11 said:
Also since you are doing weekly CCs then paying attention to price so know if you need to sell out or whatever you need to do instead of the just invest and forget, look at it monthly or quarterly or even yearly like I used to.

re: Picking strikes - Not trying to time it and wait for a spike, it's just a frequency thing. My angle is to try and eat as much premium as possible throughout the year. Could prob optimize for that a bit but not that advanced yet. I use a basic calculator to show P/L % if called, or smaller P/L% if not. My current aim is that 4-6% mark if called, 1-2% if not. So pick a strike 3-4% OTM is my usual route.

re: Weekly CCs - Chose ARKK for this specific reason as it's cheaper than SPY but the premiums are still pretty juiced on a weekly basis, especially if it's on a run. Sometimes i'll sell the calls two weeks out to make sure I stay in the P/L range above. Absolitely easier than chasing CWoods buys!

It's not a perfect science but if you just let it play out, the moves are clear. If shares called on expiry and ARKKs on a hot streak, re-buy the shares next week and do the math on open premium for a targeted strike. If not called, say thanks for the free money, and look for targeted strike knowing, however, that if there have been a bad few days the Date may have to be two or three weeks out vs one to capture the same. I'm placing importance on total frequency of trades, not just waiting for the exact right moment, good plan vs perfect etc.
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AgCPA95
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In reply to kyle field 94 • 2:07p, 2/6/21
AG
kyle field 94 said:
mazag08 said:
gougler08 said:
mazag08 said:
Has anyone followed MMP?

Sitting at $40.59, $7 below it's lowest analyst price target.

Pays a dividend of $1.0275 quarterly.. roughly 10% cash on cash at this price. And while options chain is meh, you could sell July $52.5 call for $0.50.

Granted, 4th quarter earnings were down from 2019 due to Covid and oil being down in 2020. So some risk if they don't get back to pre-Covid levels. But if they do, the dividend will likely go even higher.

I'm watching this one. Need to do more research.


Chart looks good if it holds above $40, may be a good play for my 401k with the dividend + still some upside if it can get to pre-Covid numbers at some point


Yeah this would be an IRA play for me.


Be very careful with MLPs in ira's as they can have UBTI tax issues since the mlp distributions are not taxed but instead reduce your tax basis in the asset.



This is very sound advice. Was about to reply w this as well.
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Bob Knights Paper Hands
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In reply to $30,000 Millionaire • 2:21p, 2/6/21
$30,000 Millionaire said:
The wealth management / private wealth management has been good. They shill fidelity products, obviously, but they're good at bringing ideas. The biggest thing is access to alternative investments like private equity or hedge funds. I normally pass, but they're out there.

There are certain things I am just not as knowledgeable on like how to buy bonds, and it helps to have someone to talk with.

These services are all what you make of them, though.
I've used them a bunch in foreign stock and index questions I've had this last year, since I'm trying to learn a bit about those. I want to understand where to direct the ETF portions of my investments if/when I want to further divest those out of US stocks. That way when the time comes I will have some comfort in knowing my options instead of making choices in a rush. I feel like the piece I have in the wealth management account is worth the constant dumb questions they get to answer. Plus I get my first 100 options trades each year for free, which I'm rapidly using on AAPL, AMZN, CLOV, and WWR.
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Andy07
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2:25p, 2/6/21
AG
I've read that using delta to pick covered call is common, with a general rule of thumb at delta 30.

I was thinking that using ATR might make more sense. Wait until a stock is extended above the 21 ema by ~1 ATR, and then select a strike that is 1 ATR above that.
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Brewmaster
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In reply to $30,000 Millionaire • 2:32p, 2/6/21
AG
if anyone here can do it (full time) you can brother. You can hit singles all day and make a good living out of it. I have to try to be more patient and not force trades (and listen to my own advice and my own charts!).
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Brewmaster
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In reply to RigsTx • 2:35p, 2/6/21
AG
RigsTx said:
Haven't seen this addressed on CLOV, but I was doing some reading this morning and saw that they have had several Class Action Lawsuits filed yesterday and today. Is there any concern on that?

I'm fairly new to this so don't know if this is commonplace or not.
None whatsoever for me. I think Chamath's response the other day speaks volumes. Also so does the volume that flooded in when they brought it down into the 11's. I bet this hits $30+ in March, long term much more.
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bmks270
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In reply to ClutchCityAg • 2:49p, 2/6/21
AG
ClutchCityAg said:
Oh yeah, if you've seen the Social Dilemma documentary on Netflix it illustrates it pretty well that our attention is highly coveted and for sale to the highest bidder

I realized this a few years ago. And for me it was a big shift in thinking about how my time is spent and my environment is arranged.
Philosophically, there are enormous consequences. Morally, there are enormous consequences.

If we begin to attach value to our attention like these companies do, it makes you realize that you can either let someone else buy your attention, or rather you are giving it away freely and letting them sell it. And you get some "free" service. But I think your attention has more value than the cost of the service of you were to pay for it, so going the free route is costing you more than paying for the ad free service.

Take YouTube for example. You get to watch YouTube with adds for free. Subscription YouTube is $12/month for no ads. So you can in a sense buy back your attention for $12, and really might pay for itself if you end up saving yourself falling for $120 of product buys in a year, (like a ton of weight loss and success coaching advertisers with 30 minute ads, what the hell), and you save time 5-20 seconds per video depending on the number of 5 -10 second ads you get in a video.

And on books and studying... I recently dropped $300-$400 on some professional text and reference books for my field (mechanical engineering), and I can use my attention for my own gain instead of selling it. Why let advertisers buy my attention from social media when I can gain a lot more by essentially buying my own attention investing in myself.
The cost of books will pay for itself in better work performance and career advancement by studying specialized knowledge, and I see learning materials as the cost of your attention.

Selling your attention for "free" really has a huge opportunity cost, where as buying your own attention back instead of selling it, can pay you back 10 fold in the improvement of your skills and knowledge.
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irish pete ag06
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In reply to Engine10 • 2:56p, 2/6/21
AG
Engine10 said:
I've got a 10-15% portion of funds in ARKK - flipping weeklies or monthlies on it depending on performance. Yielding 1-2% on the premium if not called, 4-6% if called. Do that 25-30 times a year assuming ARKK doesn't totally tank, not a bad way to earn a living.


That's good stuff.
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Ornithopter
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In reply to RigsTx • 3:06p, 2/6/21
AG
RigsTx said:
Haven't seen this addressed on CLOV, but I was doing some reading this morning and saw that they have had several Class Action Lawsuits filed yesterday and today. Is there any concern on that?

I'm fairly new to this so don't know if this is commonplace or not.


The consensus on this board seems to be that it was a hit piece by short sellers.

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Ragoo
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3:14p, 2/6/21
AG
I don't Twitter anymore but someone needs to send @JeffHamilton82 a note to come back to the B&I board. He was an OG.

Note: I saw him comment on the Moko commitment story from Australia.
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$30,000 Millionaire
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In reply to Brewmaster • 3:31p, 2/6/21
AG
Thank you. It comes down to the edge. Will I be able to shrug off big losses and will I over trade?
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kyledr04
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In reply to OE_Ag11 • 3:35p, 2/6/21
AG
OE_Ag11 said:
Is that the space one?


Yeah, ARKX will be the space fund. I read somewhere it might be available in late March. I'm strongly considering a much larger investment than what I've been trading. I have some company stock vesting in March that needs a better home.

Had been thinking about the same covered call income strategy a few others were just posting about.
....
Oops wrong emoji
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BrokeAssAggie
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3:50p, 2/6/21
I just showed my wife how much I'm up in 2021. Safe to say she was surprised and I might get lucky tonight. Thanks to OA and everyone on this thread. I'm trying to continue to learn. Maybe one day I will be able to do this on my own.
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Colt98
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In reply to $30,000 Millionaire • 3:53p, 2/6/21
AG
I'm in the same boat. I have basically slowly stepped away from my business over the last year and grown my ranching operation along with growing my real estate portfolio. I have been concentrating on trading for the last 6 months and things have been crazy good. I don't feel like I have the confidence yet to do what I've done in this market in a downward trending market. The last big down moves over the last two year have kicked my butt. I have made double since November then what I will make on my ranching this year. I really want to do this though.. I had back surgery a week ago and have been stuck in my house and will be for the next month. With me being at the computer 100% of the time during trading hours my accounts skyrocketed. One of my best days was the day the market was down 700 points, so maybe I have learned a few things. I finally and understanding hedges and using them.
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$30,000 Millionaire
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In reply to Colt98 • 4:13p, 2/6/21
AG
congratulations!
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$30,000 Millionaire
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4:15p, 2/6/21
AG
I have some time this afternoon (and have mental clarity - a rarity).

$NLS - I hate how much I'm down on this, but this chart looks great. Closed above the 8 EMA. We are running out of time.

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