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Listen "Option Block 307: Idiotic Upside Calls"
Episode Synopsis
Option Block 307: Idiotic Upside Calls
Trading Block: A mild selloff early in the session. SPX weeklies up 98% in 2013. SPX & VIX options hopefully getting extended hours in 2014. Best buy taking in on the chin after a poor holiday season. Chuck E. Cheese is worth a billion!
Odd Block: Calls trade in Eldorado Gold Corp. (EGO), calls trade in Amarin Corporation (AMRN), and calls trade in Insmed Incorporated (INSM)
Xpress Block: Intel, Best Buy, and DR Horton were popular on the OX desk today.
Mail Block: Keep those questions rolling in!
Comment from Shane Hamilton: Only on the Option Block does Andrew toss around words like "bereft". #alteredstate
Trading resolution from Britt Dowd: To finish building my foundation so that I can finally focus on trading options.
Follow up from Richard: Regarding Jack's question, would these have to be put based front spreads since you'll ultimately have net uncovered short positions? I didn't think naked calls, as you would have in a front spread, would be eligible for use in retirement accounts? Thanks.
Regard this question from Jack: I know you guys are not tax advisors, and so nothing you say can be taken as certain in any answer to this question. I am a small time trader, and at the moment cannot afford a CPA with trading expertise in options to do my taxes. So I am wondering if you can talk about the potential tax consequences of front spreads, especially when used as covered call replacement. I've had good success with this strategy, and I would like to move it into my margin account this year, instead of just using it in the IRA to avoid the tax headache.
Question from Luke Davis: Mark, in show 302, you said in answer to a listener question that using a six month or one year LEAP was good for a stock replacement strategy. Is there any reason you wouldn't go further out than that? For example, I am currently using this on Microsoft and Ford, but with the Jan 2016 ITM calls. Keep up the informative and entertaining shows, and happy New Year!
Trading Block: A mild selloff early in the session. SPX weeklies up 98% in 2013. SPX & VIX options hopefully getting extended hours in 2014. Best buy taking in on the chin after a poor holiday season. Chuck E. Cheese is worth a billion!
Odd Block: Calls trade in Eldorado Gold Corp. (EGO), calls trade in Amarin Corporation (AMRN), and calls trade in Insmed Incorporated (INSM)
Xpress Block: Intel, Best Buy, and DR Horton were popular on the OX desk today.
Mail Block: Keep those questions rolling in!
Comment from Shane Hamilton: Only on the Option Block does Andrew toss around words like "bereft". #alteredstate
Trading resolution from Britt Dowd: To finish building my foundation so that I can finally focus on trading options.
Follow up from Richard: Regarding Jack's question, would these have to be put based front spreads since you'll ultimately have net uncovered short positions? I didn't think naked calls, as you would have in a front spread, would be eligible for use in retirement accounts? Thanks.
Regard this question from Jack: I know you guys are not tax advisors, and so nothing you say can be taken as certain in any answer to this question. I am a small time trader, and at the moment cannot afford a CPA with trading expertise in options to do my taxes. So I am wondering if you can talk about the potential tax consequences of front spreads, especially when used as covered call replacement. I've had good success with this strategy, and I would like to move it into my margin account this year, instead of just using it in the IRA to avoid the tax headache.
Question from Luke Davis: Mark, in show 302, you said in answer to a listener question that using a six month or one year LEAP was good for a stock replacement strategy. Is there any reason you wouldn't go further out than that? For example, I am currently using this on Microsoft and Ford, but with the Jan 2016 ITM calls. Keep up the informative and entertaining shows, and happy New Year!
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