Sun, Feb 1, 2015, 4:50 AM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Pfizer Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • tobyt001 tobyt001 Dec 21, 2012 12:34 PM Flag

    Replacement investment for maligned financials naked put-writing portfolio

    now you are getting 4,365 dollars, that you have to pay taxes on 2012....so how that pens out
    on 2014...

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • how do you handle the taxes on 2012 since you received 4,365 dollars...and what do you do
      on 2014 with the taxes....

      • 1 Reply to tobyt001
      • I pay no taxes whatsoever until the position is closed out - probably in Jan. 2014. Either I'll buy back the contracts for a song in early Jan. 2014 or I'll let them expire worthless - assuming that C doesn't go below $23 a share (it's over $39 now).

        Selling options short is the reverse of what happens when you buy a stock or options. When you buy stock or options, no taxes are paid until the position is closed out with a sale. With naked puts, it's the sell side that comes first. Later on, the position will be closed out with a buy or allowing the options to expire worthless. In either case, no taxes are due until the position is closed out. How can I pay taxes when I don't know what the profit will be? The mere selling of put options is NOT a taxable event; a taxable event occurs only after there has been a sale AND a closeout buy or the options expire worthless.

        Moreover, since I'm selling the puts in December 2012 and won't close them out until Jan. 2014, my gains will be LONG-TERM gains and those gains which will be bookwed in January 2014 will mean that I'll have until April 15, 2015 to give Uncle Sam his cut.

        Sentiment: Buy

 
PFE
31.25-0.58(-1.82%)Jan 30 4:00 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.