AvrexMoney.com - Investing towards Financial Independence
(aside to avrex & gob)
now that we are on the subject of option taxation, it occurs to me that GOB's aapl assignment of 100 shares & the immediately following sale of the same probably triggered a significant capital gain.
didn't think of it at the time.
(gob would have to use the averaged cost base of his existing holding of aapl shares) (for stock gains/losses reporting, we don't use the US FIFO approach here in canada, we use an averaged cost base per share when reporting partial or swing trades.)
lephturn, too, had a fairly large assignment of aapl shares, followed by immediate sale of the same. If lepht already held old aapl shares at far lower cost, there would be a significant capital gain to report. Ouch.
lends credence to my option religion: Never Ever Let Em Exercise Against You.
As per the advice I rolled forward today.
Turned Jan 515/525 into March 515/525, 8 contracts each. There was a credit but I'll have to wait until the dust is settled to see the exact amount. I'm sure I could have gotten better than the broker on the phone, but thems the breaks trading spreads with Questrade.
EDIT: Debit of 4.35 and a credit of 4.67, seems alright compared to the chains I looked at after. Anyway I've got an extra $250 and some piece of mind for the vacation.
Last edited by Argonaut; 2012-12-13 at 01:17 PM.
Argo fiscal cliff strategy: use proceeds from my spread roll plus a bit extra; and marry my March AAPL set with a protective SPY put position. At worst it's a hedge, at best.. well, we won't go there.
has anybody seen GOB ?
somebody said they glimpsed him last weekend in the bars on crescent street, he was still doing OK with the elephant in his backpack but walking slowly & with difficulty
he said a real icebreaker for picking up cute girls though
Hi all, I'm here and still surviving. My regular income strategy has fallen to pieces until we get out of this mess so that's why I'm not around much anymore. I rolled my December positions early this week into Feb/March for a small net loss, and glad that I did. Rather than detail it all out I'll just put down what I'm holding now.
10 16FEB13 565/570 BuPS
5 16FEB13 545/550 BuPS
6 15MAR13 595/600 BuPS
1 15FEB13 700/710 BuCS
3 19APR13 690/695 BuCS
5 21JUN13 685/690 BuCS
1 17JAN14 630/650 BuCS
1 17JAN14 670/675 BuCS
1 16JAN15 700/710 BuCS
and the elephant...
1 18OCT13 660 Short Put
If we can get up to 570 by Feb I'll be largely out of the wood, but even that is looking questionable right now. I'm glad I bought myself the time though. My bull call spreads for the front end of the year are looking very unlikely to pay out, but I didn't pay much them. Those are basically a write-off at this point with a small chance of success. The 2014/2015 spreads still have a good shot of paying.
I will be relying on a blowout earnings, but I'm not sure it's going to happen. The demand is certainly there, but the supply was questionable in the first half of the quarter. It looks to be sorted out now, but is it too late? Nobody knows.
Long term the story hasn't changed. I still foresee stellar growth, certainly ample for the current valuation, for the rest of 2013 and beyond. Apple may want to start considering a larger buyback program to support the stock. This is why it's good to have cash in the bank, but I'm not sure they'll use it.
pour chaque saison
une grande option
à chaque mordu(e)
encore plus haut
Bonne et Heureuse Année