The TSLA Market / Economy

mosdef · February 7, 2021, 9:27pm

Excuse me sir its a commission. Not a kickback.

Melkerson · February 7, 2021, 9:40pm

spidercrab:

Melkerson:

Anyone able to give some cliffs on tax treatment of writing calls? I’m assuming the investor takes it on the chin there as well.

Going largely off memory, but I’m pretty sure it’s right:

Any time you have a short position (i.e., where you sell something before you buy it), you are taxed at the short terms capital gains rate when you exit that position. The idea is that no matter how long the short position was open, you only actually owned the asset in the brief moment of time between when you bought it and when you closed the position.

This applies to written calls, as well. If you write them and they expire worthless, you recognize short term capital gains at the expiration date. If you close the position by buying them back, you recognize short term capital gains/loss, as well.

If you write covered calls and you exit the position by delivering the shares, you recognize capital gains/losses equal to (proceeds from the sale plus premium from the call) - original price of the underlying shares that you’re forced to sell. Whether this is a short-term or long-term gain depends on how long you held the underlying, not how long you held the option position.

Thanks.

I assume if you’re covering calls by selling the shares, your broker will allow the opportunity to specify which lots. Is this something you need to specify at the time of writing the call or do you have an opportunity to do it later.

VoteForSocialists · February 8, 2021, 6:35am

kinda funny, not sure if it’s been posted (search didn’t find it)

https://twitter.com/Fidelity/status/1358553648016613378

nonfiction · February 8, 2021, 1:06pm

TESLA INC - IN JAN. 2021, INVESTED AGGREGATE $1.50 BILLION IN BITCOIN

TESLA - EXPECT TO BEGIN ACCEPTING BITCOIN AS A FORM OF PAYMENT FOR PRODUCTS IN NEAR FUTURE, SUBJECT TO APPLICABLE LAWS & INITIALLY ON A LIMITED BASIS

TESLA - MAY INVEST PORTION OF CASH IN SOME ALTERNATIVE RESERVE ASSETS INCLUDING DIGITAL ASSETS, GOLD BULLION, GOLD EXCHANGE-TRADED FUNDS IN FUTURE

mukdukaluk · February 8, 2021, 1:18pm

They should just continuously issue shares buy crypto sell crypto then issue shares buy crypto and so on and so on until they have every dollar on earth

hokie · February 8, 2021, 1:37pm

Alriiiight do we play the CLVS weeklies game again??

MasterofthePwn · February 8, 2021, 1:41pm

I can get paid while I wait?!?!? Sign me up!

ChrisV · February 8, 2021, 1:48pm

As a man who holds like 4 BTC I am most pleased about this.

VoteForSocialists · February 8, 2021, 4:20pm

i guess i did ok because i only sold .2 btc when it hit $40k, and missed buying it back under $30k. evidently stonks are not for donks like me.

nonfiction · February 8, 2021, 4:25pm

eeAWW · February 8, 2021, 4:51pm

So TSLA to close the day up 5%?

CanadaMatt3004 · February 8, 2021, 5:11pm

When.

You mean when.

boredsocial · February 8, 2021, 5:13pm

Yeah it’s not different this time. Either the financial asset markets will take a big hit relative to the dollar or the dollar will lose a lot of spending power. We can’t actually keep the Boomers promises to themselves. The longer they live into retirement the greater the strain will be.

anon3530961 · February 8, 2021, 5:14pm

Are you talking about the US Dollar? (:

anon3530961 · February 8, 2021, 5:15pm

CLVS 1B market cap!!

nonfiction · February 8, 2021, 5:15pm

DJIA, SPX, Nasdaq, Russell, VIX, VVIX, VXX, UVXY, DXY, Gold, Silver, Copper, Crude Oil, EUR/USD, BTC, ETH, DOGE - simultaneously green

CanadaMatt3004 · February 8, 2021, 5:18pm

Dogecoin now has a higher market cap than GME.

Makes total sense

Riverman · February 8, 2021, 5:23pm

I’ve long defended the market valuations but stuff like Tesla buying Bitcoin is just a blinking red light telling the world we’re at the top.

hokie · February 8, 2021, 5:26pm

We did it boys, we memed!

Riverman · February 8, 2021, 5:34pm

Just…come on.