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ucodegen
ParticipantMy rent went up 4.5% this year (for ’08 period). It is a lease, not a month to month. I generally try to talk them down. Last year I was able to avoid the increase for that year (’07). My 06 was a 7% increase. Be polite and back up your contentions as to why the rent should not be increased. Being a good renter is nice, but so is being flexible on moving and willing to do it(Having a 1 ton 4×4 pickup as one of my vehicles sort of makes it easy to move.). The rents are going up due to foreclosures forcing people back to renting while the bank sits on the inventory. I think the banks are hoping that keeping the inventory tied up shifts the rent-buy breakpoint.
Compare your rent to equivalents in the area. If equivalents are lower, might as well move. See if you can negotiate a cut or first month off on move in deal..
ParticipantMy rent went up 4.5% this year (for ’08 period). It is a lease, not a month to month. I generally try to talk them down. Last year I was able to avoid the increase for that year (’07). My 06 was a 7% increase. Be polite and back up your contentions as to why the rent should not be increased. Being a good renter is nice, but so is being flexible on moving and willing to do it(Having a 1 ton 4×4 pickup as one of my vehicles sort of makes it easy to move.). The rents are going up due to foreclosures forcing people back to renting while the bank sits on the inventory. I think the banks are hoping that keeping the inventory tied up shifts the rent-buy breakpoint.
Compare your rent to equivalents in the area. If equivalents are lower, might as well move. See if you can negotiate a cut or first month off on move in deal..
ParticipantAll option purchases are effectively ‘long’. Not true, you can write puts and calls, essentially shorting them.
Writing options are different than purchasing an option. This is why I made the distinction on purchasing an option. In the case where you are writing or originating an option, you are effectively on the short side. If you look at where I put in italics on this entry, the originators of the put/call could be said to be having the short position. See sections specifically dealing with Buy a put, Buy a call.
ParticipantAll option purchases are effectively ‘long’. Not true, you can write puts and calls, essentially shorting them.
Writing options are different than purchasing an option. This is why I made the distinction on purchasing an option. In the case where you are writing or originating an option, you are effectively on the short side. If you look at where I put in italics on this entry, the originators of the put/call could be said to be having the short position. See sections specifically dealing with Buy a put, Buy a call.
ParticipantAll option purchases are effectively ‘long’. Not true, you can write puts and calls, essentially shorting them.
Writing options are different than purchasing an option. This is why I made the distinction on purchasing an option. In the case where you are writing or originating an option, you are effectively on the short side. If you look at where I put in italics on this entry, the originators of the put/call could be said to be having the short position. See sections specifically dealing with Buy a put, Buy a call.
ParticipantAll option purchases are effectively ‘long’. Not true, you can write puts and calls, essentially shorting them.
Writing options are different than purchasing an option. This is why I made the distinction on purchasing an option. In the case where you are writing or originating an option, you are effectively on the short side. If you look at where I put in italics on this entry, the originators of the put/call could be said to be having the short position. See sections specifically dealing with Buy a put, Buy a call.
ParticipantAll option purchases are effectively ‘long’. Not true, you can write puts and calls, essentially shorting them.
Writing options are different than purchasing an option. This is why I made the distinction on purchasing an option. In the case where you are writing or originating an option, you are effectively on the short side. If you look at where I put in italics on this entry, the originators of the put/call could be said to be having the short position. See sections specifically dealing with Buy a put, Buy a call.
Participant@drunkle
seems like the tax basis is the most important thing to note… taxing options at full income rate blows…Yes it does… as with most taxes.. but you have extraordinary leverage with lower risk with options… if you are careful. The tax at income rate is similar to STCG(Short Term Capital Gains). Short term capital gains are for issues held less than a year, and options generally have a less than one year period. Remember that with options, you are often making a contra bet with the originators, who are often the so called experts who may be running mutual funds (They will be the ones on the short side with options).
NOTE: On options spanning more than 1 year period, I would need to check on their tax status. They may be covered by LTCG. Depends upon the amount of time the option is held.
Thanks for calling me ‘professor’.. though I really consider myself a gifted amateur. I figured that working for a salary was not going to cut it these days.. so I have set out to teach myself much of what the experts don’t tell you. In 1997 (amazing how you can remember things that change course of ones life) I re-ran numbers from a portfolio that I was going to set up in 1988 and never got around to. After much crying in my beer, I took action to learn… of course I had some more crying in my beer in 2000-2001, but it wasn’t nearly as bad as the revelation in 1997.
Participant@drunkle
seems like the tax basis is the most important thing to note… taxing options at full income rate blows…Yes it does… as with most taxes.. but you have extraordinary leverage with lower risk with options… if you are careful. The tax at income rate is similar to STCG(Short Term Capital Gains). Short term capital gains are for issues held less than a year, and options generally have a less than one year period. Remember that with options, you are often making a contra bet with the originators, who are often the so called experts who may be running mutual funds (They will be the ones on the short side with options).
NOTE: On options spanning more than 1 year period, I would need to check on their tax status. They may be covered by LTCG. Depends upon the amount of time the option is held.
Thanks for calling me ‘professor’.. though I really consider myself a gifted amateur. I figured that working for a salary was not going to cut it these days.. so I have set out to teach myself much of what the experts don’t tell you. In 1997 (amazing how you can remember things that change course of ones life) I re-ran numbers from a portfolio that I was going to set up in 1988 and never got around to. After much crying in my beer, I took action to learn… of course I had some more crying in my beer in 2000-2001, but it wasn’t nearly as bad as the revelation in 1997.
Participant@drunkle
seems like the tax basis is the most important thing to note… taxing options at full income rate blows…Yes it does… as with most taxes.. but you have extraordinary leverage with lower risk with options… if you are careful. The tax at income rate is similar to STCG(Short Term Capital Gains). Short term capital gains are for issues held less than a year, and options generally have a less than one year period. Remember that with options, you are often making a contra bet with the originators, who are often the so called experts who may be running mutual funds (They will be the ones on the short side with options).
NOTE: On options spanning more than 1 year period, I would need to check on their tax status. They may be covered by LTCG. Depends upon the amount of time the option is held.
Thanks for calling me ‘professor’.. though I really consider myself a gifted amateur. I figured that working for a salary was not going to cut it these days.. so I have set out to teach myself much of what the experts don’t tell you. In 1997 (amazing how you can remember things that change course of ones life) I re-ran numbers from a portfolio that I was going to set up in 1988 and never got around to. After much crying in my beer, I took action to learn… of course I had some more crying in my beer in 2000-2001, but it wasn’t nearly as bad as the revelation in 1997.
Participant@drunkle
seems like the tax basis is the most important thing to note… taxing options at full income rate blows…Yes it does… as with most taxes.. but you have extraordinary leverage with lower risk with options… if you are careful. The tax at income rate is similar to STCG(Short Term Capital Gains). Short term capital gains are for issues held less than a year, and options generally have a less than one year period. Remember that with options, you are often making a contra bet with the originators, who are often the so called experts who may be running mutual funds (They will be the ones on the short side with options).
NOTE: On options spanning more than 1 year period, I would need to check on their tax status. They may be covered by LTCG. Depends upon the amount of time the option is held.
Thanks for calling me ‘professor’.. though I really consider myself a gifted amateur. I figured that working for a salary was not going to cut it these days.. so I have set out to teach myself much of what the experts don’t tell you. In 1997 (amazing how you can remember things that change course of ones life) I re-ran numbers from a portfolio that I was going to set up in 1988 and never got around to. After much crying in my beer, I took action to learn… of course I had some more crying in my beer in 2000-2001, but it wasn’t nearly as bad as the revelation in 1997.
Participant@drunkle
seems like the tax basis is the most important thing to note… taxing options at full income rate blows…Yes it does… as with most taxes.. but you have extraordinary leverage with lower risk with options… if you are careful. The tax at income rate is similar to STCG(Short Term Capital Gains). Short term capital gains are for issues held less than a year, and options generally have a less than one year period. Remember that with options, you are often making a contra bet with the originators, who are often the so called experts who may be running mutual funds (They will be the ones on the short side with options).
NOTE: On options spanning more than 1 year period, I would need to check on their tax status. They may be covered by LTCG. Depends upon the amount of time the option is held.
Thanks for calling me ‘professor’.. though I really consider myself a gifted amateur. I figured that working for a salary was not going to cut it these days.. so I have set out to teach myself much of what the experts don’t tell you. In 1997 (amazing how you can remember things that change course of ones life) I re-ran numbers from a portfolio that I was going to set up in 1988 and never got around to. After much crying in my beer, I took action to learn… of course I had some more crying in my beer in 2000-2001, but it wasn’t nearly as bad as the revelation in 1997.
Participantbtw, my scottrade guy corrected me when i called my put options “shorts”. he called them long puts. i’m still confused as to what exactly entails “long” or “short”.
Options work different than stocks.. though they tie to the price of the share. Options are holding a ‘bet’ on a future event. All option purchases are effectively ‘long’.
Purchase stock: Long position because of ‘purchasing’ an item (share in this case). You get dividends(if any). Maximum loss can be full price of stock, maximum gains are taxed at either income rate(STCG) or 15%(LTCG) (unless lower income bracket in which case it may be 10% or 5%)
Sell stock short: Short position because you ‘sold’ something you do not yet have (so you are short on that position). You ‘receive’ money when you commit a short position because of the sale. The money has a cost (generally the margin rate on the amount of money involved), but this cost can be written of on your taxes (investment interest expenses). Maximum loss is full price of stock plus carried interest expense. Maximum gain would be like stock purchase but in the opposite direction and of course interest rate subtracted.
Buy a put: Long position on the option to sell stock at strike price at a future date. Betting on stock movement down. (you did not sell a put without having the put. The originators of the put could be said to be having the short position). Puts are a way to control large blocks of stock with a small amount of exposed capital. Maximum loss is only the purchase price of the option. Maximum gain is number of controlled shares x movement above strike price – price of option. Taxed at income rates.
Buy a call: Long position on the option to buy stock at a strike price at a future date. Betting on stock movement up (the originator of the option could be stated as having a short position on the option, but since your action is a purchase.. it is a long position). Calls are also a way to to control large blocks of stock with a small amount of exposed capital. Max loss is only the purchase price of the option. Maximum gain is number of controlled shares x movement below strike price – price of option. Taxed at income rates.
You probably know most of what I stated above.. just being thorough for the other readers out there.
Participantbtw, my scottrade guy corrected me when i called my put options “shorts”. he called them long puts. i’m still confused as to what exactly entails “long” or “short”.
Options work different than stocks.. though they tie to the price of the share. Options are holding a ‘bet’ on a future event. All option purchases are effectively ‘long’.
Purchase stock: Long position because of ‘purchasing’ an item (share in this case). You get dividends(if any). Maximum loss can be full price of stock, maximum gains are taxed at either income rate(STCG) or 15%(LTCG) (unless lower income bracket in which case it may be 10% or 5%)
Sell stock short: Short position because you ‘sold’ something you do not yet have (so you are short on that position). You ‘receive’ money when you commit a short position because of the sale. The money has a cost (generally the margin rate on the amount of money involved), but this cost can be written of on your taxes (investment interest expenses). Maximum loss is full price of stock plus carried interest expense. Maximum gain would be like stock purchase but in the opposite direction and of course interest rate subtracted.
Buy a put: Long position on the option to sell stock at strike price at a future date. Betting on stock movement down. (you did not sell a put without having the put. The originators of the put could be said to be having the short position). Puts are a way to control large blocks of stock with a small amount of exposed capital. Maximum loss is only the purchase price of the option. Maximum gain is number of controlled shares x movement above strike price – price of option. Taxed at income rates.
Buy a call: Long position on the option to buy stock at a strike price at a future date. Betting on stock movement up (the originator of the option could be stated as having a short position on the option, but since your action is a purchase.. it is a long position). Calls are also a way to to control large blocks of stock with a small amount of exposed capital. Max loss is only the purchase price of the option. Maximum gain is number of controlled shares x movement below strike price – price of option. Taxed at income rates.
You probably know most of what I stated above.. just being thorough for the other readers out there.
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