It's a shame , I would love to see heated option's discussion between him and Riskarb ; I'm sure that the rest of us will understand what they are talking about, lolol
actually the vinyards of Salida calling.... edit,,, I do soooo love that you are back.. thx barron or Baron or whatever....
Coach (and everyone else), Now that tax season is (almost) over, I don't recall anyone posting about applying Section 1256 rules to SPX credit spreads... Does that mean that most folks paid the full short-term rate on their gains (instead of the advantageous 60%/40% rate)? How do you handle your taxes? Also, for next year, I'd like to automate my taxes. I used GainsKeeper this year for my OX account (where I have no 1256 trades) because they built it into the website. But if I had 1256 type trades in the OX account, would GK know how to deal with them or would they be treated as regular equity trades? [EDIT: If you hedge your spreads with SPY, then is it true that you have a "mixed straddle" instead of a straight 1256 position, and the tax treatment becomes really complex?]
Mo, Thanks! You are always very helpful and provide clear explanation. How about 30d and 60d ? Does that mean the current month and next month expiration ?
What's Gainskeeper? I use a spreadsheet for trades by traders accounting. Nice spreadsheet but have to manually enter each leg of each trade. Can't import into it. Can you do that with Gainskeeper. Is there a website.
As far as I know, yes that is a mixed position. Although many people like to argue that ETFs should receive 1256 treatment, I am fairly posistive that the decision has been made against it. I think it mostly had to do with indices being M2M whether you make the election or not, whereas ETFs are not. But I'm not a CPA, so don't quote me on that.