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Anyone using covered puts
#29
Thanks, this is really interesting and useful to me! I'm really intrigued by he idea of comparing the premiums you collect to the dividends you would have collected.

Some questions:
  • When you say "expired worthless," you mean that the option was not exercised, you pocketed the premium, and were free to move on and use the cash that had been securing the put for your next endeavor, right?
  • What exactly do you mean when you say that you took a loss on CVX (for example)? Do you mean that the share price was lower than the strike price at expiration and so your "loss" was the difference between the strike price and the market price that you were required to pay (after accounting for the premium that you collected for selling the put)? Do you really consider this a loss, since you acknowledge (I think?!) that you would have been happy buying at the strike price at the time you sold the put?
  • If you don't mind me asking, are you making these trades in a taxable or tax-deferred account?
  • If in a taxable account, I assume the premiums collected are taxable income. Do you have to track those for reporting on your return, or does the brokerage send a statement at year end of some kind?
Thanks again!
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Messages In This Thread
Anyone using covered puts - by fenders53 - 08-31-2018, 07:42 AM
RE: Anyone using covered puts - by ChadR - 08-31-2018, 08:54 AM
RE: Anyone using covered puts - by Kerim - 08-31-2018, 09:03 AM
RE: Anyone using covered puts - by fenders53 - 08-31-2018, 09:39 AM
RE: Anyone using covered puts - by Kerim - 08-31-2018, 10:45 AM
RE: Anyone using covered puts - by fenders53 - 08-31-2018, 11:53 AM
RE: Anyone using covered puts - by NilesMike - 09-01-2018, 03:08 PM
RE: Anyone using covered puts - by fenders53 - 09-01-2018, 04:14 PM
RE: Anyone using covered puts - by NilesMike - 09-05-2018, 09:59 PM
RE: Anyone using covered puts - by fenders53 - 09-05-2018, 10:45 PM
RE: Anyone using covered puts - by NilesMike - 09-06-2018, 06:09 AM
RE: Anyone using covered puts - by fenders53 - 09-06-2018, 11:58 AM
RE: Anyone using covered puts - by fenders53 - 09-07-2018, 09:40 AM
RE: Anyone using covered puts - by fenders53 - 09-07-2018, 01:41 PM
RE: Anyone using covered puts - by NilesMike - 09-07-2018, 06:15 PM
RE: Anyone using covered puts - by fenders53 - 09-07-2018, 08:01 PM
RE: Anyone using covered puts - by fenders53 - 09-12-2018, 10:49 AM
RE: Anyone using covered puts - by fenders53 - 09-12-2018, 01:43 PM
RE: Anyone using covered puts - by NilesMike - 09-12-2018, 06:15 PM
RE: Anyone using covered puts - by fenders53 - 09-13-2018, 09:24 AM
RE: Anyone using covered puts - by fenders53 - 09-13-2018, 11:48 AM
RE: Anyone using covered puts - by NilesMike - 09-13-2018, 08:20 PM
RE: Anyone using covered puts - by fenders53 - 09-14-2018, 07:33 AM
RE: Anyone using covered puts - by fenders53 - 09-20-2018, 03:43 PM
RE: Anyone using covered puts - by fenders53 - 11-01-2018, 07:39 PM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 11:26 AM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 09:29 PM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 01:07 PM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 04:48 PM
RE: Anyone using covered puts - by fenders53 - 12-01-2018, 09:18 AM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 01:29 PM
RE: Anyone using covered puts - by ChadR - 11-30-2018, 04:01 PM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 04:41 PM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 05:07 PM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 05:08 PM
RE: Anyone using covered puts - by Kerim - 12-01-2018, 01:29 PM
RE: Anyone using covered puts - by fenders53 - 12-01-2018, 05:50 PM
RE: Anyone using covered puts - by fenders53 - 12-02-2018, 07:09 AM
RE: Anyone using covered puts - by fenders53 - 12-02-2018, 08:57 PM
RE: Anyone using covered puts - by fenders53 - 12-03-2018, 08:32 AM
RE: Anyone using covered puts - by fenders53 - 12-03-2018, 11:48 AM
RE: Anyone using covered puts - by Kerim - 12-03-2018, 10:59 AM
RE: Anyone using covered puts - by NilesMike - 12-04-2018, 11:06 PM
RE: Anyone using covered puts - by fenders53 - 12-05-2018, 01:07 AM
RE: Anyone using covered puts - by Kerim - 12-07-2018, 03:25 PM
RE: Anyone using covered puts - by ChadR - 12-07-2018, 03:32 PM
RE: Anyone using covered puts - by fenders53 - 12-07-2018, 05:17 PM
RE: Anyone using covered puts - by fenders53 - 12-26-2018, 06:09 PM
RE: Anyone using covered puts - by fenders53 - 01-01-2019, 11:47 AM
RE: Anyone using covered puts - by Kerim - 01-01-2019, 12:16 PM
RE: Anyone using covered puts - by fenders53 - 01-01-2019, 01:04 PM
RE: Anyone using covered puts - by fenders53 - 02-17-2019, 09:18 AM
RE: Anyone using covered puts - by NilesMike - 02-17-2019, 09:25 AM
RE: Anyone using covered puts - by fenders53 - 02-17-2019, 08:09 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:17 AM
RE: Anyone using covered puts - by Kerim - 02-18-2019, 05:27 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:09 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:10 PM
RE: Anyone using covered puts - by fenders53 - 02-19-2019, 08:14 AM
RE: Anyone using covered puts - by NilesMike - 02-18-2019, 06:03 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:05 PM



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