Como exercitar opção de venda em etrade

Como funcionam as opções de ações? Trade Calls and Puts & # 8211; Parte 1.

por Darwin em 10 de agosto de 2009.

Desde que eu costumo postar sobre negociação de opções de ações, investimento, cobertura e geração de renda e obter a pergunta ocasional, & # 8220; Como funcionam as opções de ações? & # 8221; ou & # 8220; Como negociar opções de ações, percebi que faria uma série sobre os vários tipos de estratégias de opções de ações lá fora (elas são numerosas!) Começando com as estratégias mais básicas de opções de ações: negociação e venda opções. Começarei com algumas definições e, em seguida, entrarei em alguns exemplos da vida real.

Noções básicas de negociação de opções de ações:

Um Contrato de Opção de Compra de Ações é um contrato entre um comprador e um vendedor pelo qual um comprador CALL pode comprar uma ação a um determinado preço chamado preço de exercício e um comprador PUT pode vender uma ação pelo preço de exercício. 1 Contrato de Opção de Stock representa 100 ações do estoque subjacente Pense em uma CALL e uma PUT como opostos. Você pode ser um Comprador de Chamada ou um Vendedor Você pode ser um PUT de Comprador ou um Puts / Chamados do Vendedor e um status de Comprador / Vendedor, existem 4 tipos principais de transações que cobriremos hoje & # 8211; Coloque o Comprador, o Vendedor, o Comprador de Chamadas e o Vendedor de Chamadas Se você é um comprador de uma opção, você paga o prêmio & # 8220; listado & # 8221; para a opção; Inversamente, como vendedor de um contrato de opção, você obtém uma renda equivalente à & # 8220; premium & # 8221;

Os principais termos das opções são os seguintes:

Preço de Exercício: Este é o preço-chave que impulsiona a transação. Para uma opção de compra, se o preço da ação subjacente for ABAIXO do preço de exercício, a opção estará & # 8220; fora do dinheiro & # 8221; e se assim for no vencimento, expirará sem valor. Para uma opção de venda, se o preço da ação subjacente for SUPERIOR ao preço de exercício, a opção é & # 8220; fora do dinheiro & # 8221; e se assim for no vencimento, expirará sem valor. Expiração: Esta é a última data em que a opção pode ser negociada ou exercida, após o que expira. Geralmente, há opções negociadas para cada mês e, se elas saem anos, elas são chamadas de LEAPS. Os mesmos conceitos valem para as LEAPS como os contratos de opções de ações que estamos discutindo aqui. Premium: Esta é apenas outra palavra para o preço do contrato de opção. Segurança Subjacente: Para os nossos propósitos, discutiremos as opções de ações. Se você está mantendo um contrato com a Microsoft, tem o direito (mas não a obrigação) de exercer 100 ações da MSFT. Comprador ou vendedor Status: Se você é o comprador, você tem o controle da transação. Você comprou o contrato de opção e pode executar a transação ou fechá-la ou pode optar por permitir que o contrato de opções expire (geralmente apenas no caso em que é inútil). Se você é um vendedor de um contrato de opções, você está à mercê do comprador e deve confiar no titular do outro lado do contrato. Existe a oportunidade de fechar o & # 8221; a posição.

Exemplo de negociação de opções de ações # 1 & # 8211; Comprador de chamadas:

As pessoas negociam opções de ações por inúmeras razões. Muitas vezes, é puramente por motivos especulativos. Por exemplo, se você acredita que a pandemia de gripe suína vai se tornar particularmente problemática e uma ação com interesse em fornecer vacinas em grandes quantidades poderia se beneficiar de tal cenário, então talvez você compre uma opção de compra em dinheiro no Novavax. Se as ações estiverem em US $ 4,28 hoje e você achar que elas poderiam ultrapassar US $ 10 em uma epidemia maciça, talvez você compre a opção de compra de 10 (greve) de janeiro. O custo (prêmio) é 0,70. O .70 é & # 8220; por ação & # 8221; so .70 * 100 = $ 70. Isso significa que vai custar US $ 70 para comprar um contrato de opção única, além de quaisquer comissões de negociação existentes. Como você pagou 0,7 ou US $ 70 e o preço de exercício é de US $ 10 por ação, até a data de expiração de janeiro (a terceira sexta-feira de cada mês), as ações da NVAX precisariam de US $ 10,70 para que você quebrasse. Para ter dinheiro (em vez de comissões), as ações precisariam exceder US $ 10,70. Se, por exemplo, trocar o foguete por $ 20,00 no vencimento e você vender as opções de volta para fechá-lo imediatamente antes da expiração, você embolsará a diferença entre $ 20 e $ 10 e colherá (10 * 100 compartilhamentos) = $ 1000. Dado o seu investimento inicial de US $ 70, embora as ações subiram apenas cerca de 5 vezes, de US $ 4,28 para US $ 20, a opção retornou mais de 14 vezes o investimento inicial (US $ 1.000 / US $ 70). Como você pode ver, a utilização desses instrumentos alavancados pode levar a grandes ganhos rapidamente. No entanto, a maioria das opções realmente expira sem valor & # 8211; cerca de 2/3 pelas estimativas mais convencionais. Não há passeio livre. Para todos que procuram um home run especulativo, existe um vendedor do outro lado, que obtém rendimentos de um comprador especulativo, achando que a ação NÃO ATINGIRÁ o preço de exercício que eles venderam, para que eles consigam manter isso. 7 no final do prazo de vencimento em janeiro. Note que no outro extremo está um Vendedor de Chamadas, que é frequentemente alguém envolvido em estratégias de escrita de opções de compra cobertas & # 8211; Isso pode ser uma estratégia de opção lucrativa que vale a pena conferir também.

Exemplo de Negociação de Opção de Compra de Ações # 2 & # 8211; Coloque o comprador:

Ao se perguntar se alguém realmente ganhou dinheiro durante o colapso econômico, a resposta é um retumbante SIM! As pessoas que detinham ações de empresas financeiras e imobiliárias, em especial, obtinham grandes retornos sobre o investimento, dadas as quedas abruptas das ações dessas empresas. Se, por exemplo, você sentir que estamos prestes a ter outra calamidade econômica devido ao colapso das hipotecas comerciais, e que todas as Finanças vão cair, você pode comprar uma opção de Put no Financials ETF XLF, que é representativo do setor financeiro. em geral. Com um preço de ação de US $ 13,34, digamos que você compre um vencimento de dezembro de 2009. Coloque um preço de exercício de US $ 10. Isso significa que você espera que o ETF XLF caia abaixo de US $ 10 por ação até dezembro. O prêmio (ou seu desembolso em dinheiro) para tal peça é de US $ 25 por contrato. Isso é relativamente barato. Mas lembre-se de que você está falando de uma queda de 40% para apenas empatar. Se o XLF entrar em colapso e retornar aos seus baixos de março em torno de US $ 6 por ação, seu put valerá cerca de US $ 4 no expriy (10-6). Isso representa um retorno de 16x no investimento. Imagine os jogadores que tiveram a perspicácia de comprar fora do dinheiro colocado em 2007 e 2008?

Como negociar opções de ações?

Existem vários equipamentos de corretagem on-line que permitem negociar opções de ações. Para a maioria das roupas, você pode comprar opções sem quaisquer requisitos especiais. Se você está procurando vender opções, porque seu risco é muito maior (ou ilimitado para vender chamadas nuas / descobertas), geralmente é necessário se inscrever em uma conta de margem e aceitar notificações de risco.

Aqui estão as principais corretoras de negociação de opções on-line com base em resenhas e custos:

1. optionsXpress & # 8211; Incrível Bônus de Inscrição de $ 100 em Execução Agora. Mais, $ 12,95 para 1,5 ou 10 contratos & # 8211; taxa fixa se bater 35 comerciantes / trimestre. Caso contrário, $ 14.95 / trade. Um bom preço para os comerciantes de opções mais novas / menores. Os estoques são de US $ 9,95 por negociação, se forem superiores a 8 negócios por trimestre, ou US $ 14,95, para 8 negociações ou menos.

2. Zecco & # 8211; Outro cenário incrível de preços & # 8211;

Receba 10 negociações de ações gratuitas todos os meses com saldo de US $ 25.000 ou 25 negócios por mês US $ 4,50 caso contrário.

3. tradeMONSTER & # 8211; $ 7.50 Negociações de ações em toda a linha. US $ 12,50 Opções Trades para até 20 contratos.

4. OptionsHouse & # 8211; Um incrível Preço de Negociação de Ações de US $ 2,95 e Preço de Contrato de Opções de US $ 9,95.

5. Tradeking é amplamente conhecido como melhor na classe de serviço e custo. Eu endosso o TradeKing e tenho uma conta eu mesmo. Negociações de ações de US $ 4,95 e competitivas em tudo, desde Opções até Margem. Confira!

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Eu amo o TradeKing. Achei que nunca sairia do Etrade, mas estava errado. Há tanta coisa que você pode fazer e fazer com opções de ações. Se você não usa opções de ações atualmente, aprenda como fazer uma matança com seu pouco dinheiro que você tem.

Richard Gulino Resposta:

5 de outubro de 2011 às 14h52.

@Earn Cash Agora, estou interessado em aprender sobre as opções e ficaria muito grato por seu ensino me ..

Oi, estou procurando investir em ações de aplicativos para dispositivos móveis e smartphones. Você pode fornecer alguma sugestão? Até agora eu tenho SWKS, ARMH, MIMV, ZAGG, RFMD e NVDA desta lista: wikinvest / wiki / Mobile_app_stocks, mas eu preciso de posições adicionais. Se houver algum ETF com foco em dispositivos móveis, isso também seria ótimo. Obrigado & # 8211; Phil Cantor.

Muito útil. Eu acho que a negociação de opções tem um grande potencial para o investidor não profissional, bem como para os profissionais. Eu acho que é necessário aprender sobre algumas das estratégias além de comprar chamadas e opções. É realista para o comerciante de origem se engajar em opções de venda, ou ele deveria se limitar a comprar apenas?

Do que você tanto por toda essa grande informação. Suas explicações sobre o comprador de chamadas & # 8216; & # 8217; e & # 8216; colocar & # 8217; comprador realmente ajuda. Outro site que eu encontrei para ser muito útil para iniciantes é (optionsimple). Obrigado novamente. Você me ajudou muito 🙂

Onde posso encontrar os preços das opções de venda? Gostaria de saber quanto custaria uma opção de venda se eu tivesse um preço de exercício igual ao que comprei uma ação e só precise dela por um curto período de tempo digamos 5 dias. Eu quero usá-lo como seguro ou proteção que meu estoque não vai abaixo do que eu comprei para.

Opções binárias são uma farsa para levar o seu dinheiro. Eles são offshore e não regulamentados pelos EUA. Não se deixe enganar se você for ao youtube e também procurar por scam de opções binárias. Você pode dar-lhes o seu dinheiro que eles vão levar você pode fazer $ 50.000, mas eles nunca lhe enviarão um centavo. Além disso, se você lhes der sua informação pessoal. Roubo de identidade instantânea.

Boa explicação. Eu sempre acho que as opções são mais complexas do que as ações, mas esse é um bom começo.

A negociação é agora Ally. Seguindo o seu link sobre Tradeking, você será redirecionado para investor. tradeking / account-login & # 8220; Sua conta TradeKing está mudando para Ally, e nós fizemos o trabalho pesado para você. Agora entre para completar o seu movimento. & # 8221;

Ei, obrigado pela ótima explicação! Isso faz mais sentido agora.

Faça o download do software fiscal TradeLog.

Faça o download do arquivo de configuração para a atualização mais recente do TradeLog.

versão 17.0.0.1 - data de lançamento: 30/01/2018.

Anotações importantes:

Para atualizar sua cópia do TradeLog, você precisa baixar a versão mais recente do programa de instalação e reinstalar. O programa de instalação irá reinstalar o TradeLog sobre sua versão antiga sem afetar nenhum de seus arquivos de dados. O programa de configuração é o mesmo para todas as versões do produto TradeLog. Seu produto registrado será desbloqueado ao inserir seu código de registro após a instalação no seu PC. Depois de enviar as informações acima, você será direcionado para salvar o arquivo de configuração no seu computador. Uma vez salvo, por favor, execute o programa de instalação para instalar a versão mais recente do TradeLog no seu PC.

Atualizar histórico.

IB Import - modifique para trabalhar com as novas especificações IB BrokerConnect.

Ano fiscal de 2017 - liberar formulários fiscais de 2017. Fidelity Import - corrija o BrokerConnect for Fidelity.

Fim do ano fiscal - se ETY falhar ou for abortado, libere a licença TaxFile.

tastyworks Import - corrija o formato da data de expiração do ticker da opção.

tastyworks Import - adiciona suporte para importar arquivos CSV do tastyworks. Relatórios detalhados e resumidos - filtra automaticamente as datas antes do final do ano, desde que nenhum filtro de data tenha sido previamente selecionado. Vision Financial Import - autodetecta o formato de arquivo CSV da linha de cabeçalho; atribuir automaticamente operações curtas conforme necessário.

Relatórios - adicione um aviso quando o usuário executar um possível relatório de vendas de lavagem para apenas uma das várias contas.

Importar COR / Speedtrader - autodetecta o formato de arquivo CSV da linha de cabeçalho. Coluna de tempo de exibição - para brokers que relatam o tempo de negociação, pergunte ao usuário antes de ativar a coluna Time.

OFX Import - analisa erros de OFX para possíveis caracteres de senha inseguros.

IB Import - avisa quando o usuário precisa importar um mês de cada vez. E * Trade / OptionsHouse - remova os zeros à direita da parte fracionária do preço de exercício, quando aplicável.

E * Trade / OptionsHouse - atualiza a importação de CSV para lidar com formatos mistos. Certificado Digital - assinatura digital atualizada.

OptionsHouse - permite a importação de dados herdados OptionsHouse em contas ETrade. Importações de CSV - aprimora o processamento de campos de texto entre aspas. SLConvert durante a importação - corrija a comissão e o valor ao dividir o comércio combinado de curto / longo durante a importação. Merrill Edge / BoA Import - adiciona suporte para novo formato.

Importações de CSV - aprimora o processamento de campos de texto entre aspas. SLConvert durante a importação - corrija a comissão e o valor ao dividir o comércio combinado de curto / longo durante a importação. Merrill Edge / BoA Import - adiciona suporte para novo formato.

TradeZero (CSV) - adiciona nova importação de corretor. Visão Financeira (CSV) - adicionar nova importação de corretor. Apex Import - melhore a flexibilidade para datas de negociação. Ninja Trader (CSV) - melhora o manuseio de Data / Hora. Broker Connect (OFX) - use SECNAME para mais opções.

ETC Import (CSV) - adiciona suporte para novo formato de arquivo. Negociações abertas - corrija a função de preços atuais para trabalhar com novos serviços de cotação de preços. Relatório de Venda de Lavagem Potencial - ative em Todas as Contas quando pelo menos uma conta não for MTM. Broker Connect (OFX) - receba CALL / PUT de SECNAME quando possível. Broker Connect (OFX) - obtenha a Data de Expiração de SECNAME apenas para opções semanais ou de MP.

Importação de TDAmeritrade - mude para apoiar o novo formato de opções semanais. TaxFiles - não precisa mais de um TaxFile para abrir, converter ou criar um arquivo (somente para Finalizar o Ano Fiscal). Change Ticker - reverta automaticamente os tickers afetados. 1099 Relatório de reconciliação - corrija o texto para contas MTM. Relatório de Venda de Lavagem Potencial - desabilite para contas MTM. Versão de avaliação gratuita - corrige funções suportadas na avaliação gratuita. Listar TaxFiles - agora também mostra o número disponível e também usado. Visualizar coluna de horário - não substitui mais se o usuário desabilitar essa coluna. Charles Schwab Import - correção para o formato de novos títulos. Obter suporte - permite até 3 anexos adicionais. TradeKing Import - adiciona suporte para atribuições de opção curtas.

Nomes dos contribuintes - correção para suportar o período após a inicial do meio. Change Ticker - opção de correção para reviver somente tickers afetados. Senha do Arquivo - corrija a senha / redefina o novo código de abertura. Abrir arquivo - atualiza somente o cabeçalho Pro se o contador RegCode for alterado.

Fim do ano fiscal - permite arquivos devidamente licenciados sob o RegCode expirado. Open File - melhora a lógica para verificar o RegCode antes de carregar o arquivo.

Fim do ano fiscal - corrija arquivos previamente registrados em um RegCode antigo. ETY reverso - corrija para que os logs do servidor acompanhem com precisão o ano fiscal final de reversão. File New - corrija para reconhecer os TaxFiles disponíveis corretamente.

End Tax Year - melhora a lógica de uso de TaxFiles baseado em logs do servidor Toolbar - melhora o espaçamento para usuários com telas de baixa resolução Account Import - corrige erros que combinam cabeçalhos de arquivos BoA / Merrill Lynch - adiciona suporte para importação de frações compartilhadas, reinvestimento de ações. Avaliação gratuita - correções para obter suporte, arquivo aberto.

Avaliação gratuita - correções para obter suporte, arquivo aberto. BoA / Merrill Lynch Import - adiciona suporte para correções comerciais. Abrir arquivo - correção para alterar o registro do arquivo.

Importação de Opções Semanais - atualização para suportar outra variação de formato de opção semanal do CBOE. Bank of America (BoA) / Merrill Lynch Import - atualização para suportar alterações no formato de opção. EULA - atualize para cobrir os depoimentos. Apex Import - atualização para suportar a mudança no formato do ticker de opções. SpeedTrader Import - atualização para suportar o novo formato CSV. Obter suporte - permite ao cliente anexar arquivo XLS, CSV ou TXT (além do PDF), se desejado. Compatibilidade - pequenas alterações para melhorar a compatibilidade com versões anteriores.

Broker Connect - permite intervalo de datas para importações de MTM além do final do ano. Lista de verificação de final de ano - adicione o botão Lista de verificação à barra de ferramentas no formulário principal. File Edit - corrija para que os TaxFiles antigos permaneçam no seu RegCode original. Menu Relatório - corrija a distinção Individual / Corporativa. File Edit - corrija para mostrar corretamente a configuração atual EIN / SSN. Avaliação gratuita - corrija a tela inicial para clientes fora dos EUA.

Relatar PDFs - remova a marca d'água DRAFT dos relatórios de 2016. Assistente de linha de base - quando o usuário continuar clicando em Restaurar lista, ative o botão Avançar sem adicionar mais registros. Abrir arquivo - corrige automaticamente as negociações com tipos duplos descartando o primeiro. Importar - permite que todas as contas (dinheiro ou MTM) importem até 10/16 do ano seguinte antes de terminar o ano fiscal atual. Opções semanais / mensais - solução alternativa para as opções semanais e mensais do CBOE que não têm mais a data de validade correta no fluxo de dados.

Arquivo aberto - permite que arquivos com certos erros sejam abertos. Importação de CSV do Apex - adicione suporte para o novo formato 2017.

Aviso de direitos autorais - alterou os direitos autorais para a Cogenta Computing, Inc., 2017.

Relatório 8949 - simplifica o aviso sobre Rascunho antes do ano fiscal final. Versão de 2016, atualização de Formulários de Impostos - atualizar e liberar formulários fiscais de 2016.

Atualização de Software - aprimora a nova detecção de lançamento. 1099 Recon Report - corrija o ajuste de vendas da opção. IB Import - permite que o intervalo de datas do Broker Connect atinja o final do ano civil (por exemplo, 31 de dezembro a 1 de janeiro).

Arquivos de teste - corrija o erro relacionado à abertura do arquivo do modo de teste por um usuário registrado. Obtenha suporte - segurança aprimorada ao obter o endereço de e-mail do usuário. Arquivo Salvar - pequena alteração para garantir que as negociações sejam sempre classificadas corretamente no momento em que são salvas em um arquivo. Futuros - quando o usuário altera o multiplicador FUT para um determinado ticker em Opções Globais, o Tradelog atualiza as negociações existentes desse ticker e ajusta o número de contratos de acordo com o novo multiplicador. TaxFiles - verifique se há uma licença disponível antes de abrir um arquivo criado no modo de avaliação.

TaxFiles - exibe a mensagem de erro se o registro TaxFile falhar. MTM - certifique-se de que os usuários Pro tenham acesso a todas as funções do MTM. Arquivo de amostra - limite a 400 registros e desabilite as funções de edição de arquivo e final do ano. Ano fiscal final - suporte adicionado para os preços MTM do final do ano remanescentes em arquivo após o ano fiscal do ano inverso. Ano fiscal do final inverso - não usa mais um arquivo BAK separado; pergunta ao usuário se os registros MTM devem ser mantidos ou não. Usuários Pro - avisa quando abrir um arquivo de teste antes de usar uma licença Pro. TradeStation - adiciona suporte para código de segurança. Scottrade - correção para importação de CSV. Exercício / Atribuir - altera a interface do usuário; Use checkbox ao invés de yes / no para manual / auto assign. Exercício / Atribuir - corrige um bug que permitia a falha do TradeLog em certos casos. Exercício / Atribuir - permite que o usuário pule permanentemente opções, assim como ações. Editar vários registros - revende automaticamente as negociações quando determinados campos são alterados pelo usuário. Novos BBIOs em espaços abertos / finais no cabeçalho, se presentes. Vendas de Lavagem - atualize para lidar melhor com as vendas de lavagem de opções curtas fechadas por uma perda anexada a ações de ações abertas solitárias, curtas ou longas.

Scottrade CSV Import - atualização para lidar com alterações em maiúsculas / minúsculas e para ignorar opções expiradas / atribuídas. BoA / Merrill import - atualização para suportar o novo formato de arquivo CSV. Importação do Assistente de Linha de Base - ignora registros com data em branco. Exercício / Atribuir - interceptar registros com números de contas incorretos. Fim do ano fiscal - pequena melhoria de velocidade.

Tradestation brokerConnect import - atualizado para alterações na página de login html. Vanguard csv import - atualizado para suportar símbolos de opções OPRA.

1099 Recon - não marca automaticamente a caixa 'Vendas ajustadas para prêmios de opção' quando o corretor é BOA ou Merrill. Stock Split - corrige o bug quando a taxa de divisão é menor que 1: 1. Arquivo de Amostra - atualize para trabalhar com o novo beta. Fim do ano fiscal - corrija o bug quando o usuário desejar encerrar o ano fiscal sem inserir um SSN ou EIN. Abrir Arquivo - Verifique se o nome do arquivo corresponde ao cabeçalho do arquivo durante a abertura; se não, avise o usuário e dê a ele uma chance de consertá-lo. Usuário de teste - Corrija o caso do usuário de teste recém-registrado com a senha no arquivo que errou na primeira vez que ele for aberto usando seu novo RegCode.

Relatório resumido - corrija o bug que afeta a data de venda para negociações longas. Copiar / Colar - corrige um erro ao selecionar determinada combinação de colunas apenas visíveis. Fim do ano fiscal - peça ao usuário para inserir o SSN / EIN, se não houver nenhum. Arquivo Editar - deixe claro que a senha é opcional; melhorar o manuseio das opções SSN / EIN / None. Importe o Morgan Stanley - adicione suporte para a importação do Morgan Stanley CSV. Botão Copiar - corrigir bug na barra de ferramentas Copiar botão. BrokerConnect - atualize a importação Scottrade para trabalhar com as alterações mais recentes da página da corretora. Obter preços atuais - Melhore a função para obter os preços das ações em uma data específica e atribuir $ 0,00 às opções expiradas. Renumerar Negociações - correção para reemissão de W Recs quando a primeira negociação for fechada. Obter preço atual - atualize para trabalhar com o formato mais recente da Internet.

Obter preço atual - atualize para trabalhar com o formato de dados de preço de internet mais recente.

Fim do ano fiscal - melhora a correspondência dos registros W no arquivo NextYear. ETY reverso - correção para uso com arquivos mais antigos e não criptografados. 1099 Recon - melhore o ajuste curto das vendas de MTM para combinar mais de perto.

1099 Recon - corrige o ajuste de vendas curtas da MTM. Inserir registro - corrigir para evitar que o cursor congele. Relatório do Razão - aprimore a Cópia adicionando números de linha e comentários. OFX Import - melhore a correspondência comercial durante as importações do OFX. Arquivo \ Novo - permite ao usuário selecionar TaxYear sem código do Suporte.

Arquivo \ Editar - requer código do Suporte para alterar o Ano Fiscal. Importação de OFX - correção para corresponder corretamente aos registros W existentes. Alterar Código ABC - corrija para evitar o congelamento do cursor. IB Import - correção para evitar o congelamento se houver um problema com a conta do usuário. Editar \ Ajustar Base de Custo - adicione a opção para ajustar por ação, bem como por comércio.

Ajuda \ Update - correção para evitar o congelamento quando o usuário verifica atualizações e não encontra nenhuma. Account \ Import - correção para funcionar corretamente quando o arquivo atual está vazio.

Relatórios G / L e 8949 - correção para vendas a descoberto encerrada com prejuízo de 3 dias anteriores ao ano anterior, não mostrando o G / L e o Form 8949.

OFX Import - torna as mensagens de erro mais claras. Relatório de Vendas de Lavagem Potencial - links de informações adicionais fixos. Charles Schwab Import - modificado para manipular strings citadas contendo vírgulas. Botão Importar - desative o botão Importar na aba Todas as contas após a importação do OFX. Nomes de contribuinte / arquivo - permite 0 (zero) caractere em nomes. Posições abertas - os usuários podem agora digitar a data do evento e pressionar a tecla ENTER para aceitar. Account \ Import - suporte adicionado para importar arquivos de várias contas. Compartilhamentos negativos - a velocidade aprimorada dos compartilhamentos negativos é exibida e a função Editar \ Forçar correspondência. Importação de Lightspeed - melhor importação para estoques de listas. Open \ Convert - bug de correção: salva a senha durante a conversão. Obtenha suporte - atualização para uso de suporte durante todo o ano.

Obter suporte para este arquivo - permite que o usuário anexe 1099, se desejar. Assistente do BaseLine - evita erros causados ​​por falha ao clicar em Adicionar. Ajustar base de custo - atualização para suportar o ajuste de várias linhas.

File Open (Convert) - permite que os usuários reconvertam o mesmo arquivo se algo der errado na primeira vez. MB Trading - atualização para suportar o novo formato de importação MB Trading CSV. Relatório Ganhos / Perdas - correção para permitir relatório da guia Todas as contas. Relatório Recon 1099 - exibe o aviso antes de corrigir 1099 Configurações do relatório Recon. - defina as caixas de seleção no relatório 1099 Recon para agentes conhecidos. - correção para redefinir OptionSales ao executar o relatório várias vezes. Relatório MTM / Form 4797 - corrija para exibir vendas, custos e ganhos de curto prazo para o MTM.

Erro Multiplicador Zero - consertado para detectar zeros em todos os tipos, não apenas futuros.

Nome em Relatórios - adiciona suporte para período em nome. Exclusão de conta - correção para quando a conta restante não tiver negociações. End Tax Year (ano fiscal final) - corrija os arquivos que são negociados após 1/31 do próximo ano.

Fim do ano fiscal - permite o ano fiscal final para os TaxFiles que foram registrados anteriormente. File Password Reset - função adicionada para redefinir a senha do arquivo do cliente. IB brokerConnect import - formato atualizado de mensagens retornadas do servidor IB quando o download falha.

IB brokerConnect import - atualizado para a nova IB / TradeLog Service API, que não efetua login via site da IB para downloads do histórico de transações - muito mais rápido e seguro. Fidelity brokerConnect import - atualiza para aguardar até que o relatório seja concluído antes de fazer o download e corrigir os tipos de conta non_Investment. Vanguard Import - suporte aprimorado para negociações curtas. Arquivo, Novo / Editar - adicionado suporte a nomes e números com hífen e "&" char. Arquivo, Abrir - correção para converter arquivos antigos. Arquivo, Salvar - adiciona suporte para salvar ao adicionar ou editar registros. Arquivo, Ano fiscal final - correspondência aprimorada de registros W no próximo arquivo de imposto de renda.

- Corrigido o erro EOutOfMemory ao executar em arquivos muito grandes.

Arquivo, Lista TaxFiles - item de menu adicionado para que os usuários possam ver a lista de arquivos de impostos registrados em nosso back office. Arquivo, Novo - permite criar um arquivo se o nome do contribuinte já existir. Arquivo, Abrir - teste aprimorado para arquivos criptografados. Arquivo, Abrir / Converter - permite conversões ilimitadas para os inscritos atuais. Fim do ano fiscal - não registre o TaxFile do arquivo do próximo ano até o encerramento do próximo ano fiscal. Relatório MTM - etiqueta de conta fixa nos Valores Mobiliários Marcados para o Mercado.

Assistente de posições da linha de base - erro corrigido quando não há registros para importar para um período específico. Fim do ano fiscal - simplificou a forma como os TaxFiles são processados ​​quando termina o ano fiscal. 1099 Relatório de reconciliação - notas atualizadas para problemas de reconciliação.

1099 Relatório de reconciliação - correção para notas MTM que estão sendo incluídas quando a conta não é MTM e adicionada nota que 1099 vendas brutas podem não ser reconciliadas. Report close - posição de tela fixa da janela principal para que permaneça na tela em que o relatório foi executado em uma configuração de vários monitores.

Fim do ano fiscal - corrija o bug ao terminar o ano fiscal e o ano novo não tenha trocas nele. Também problema fixo com futuros abertos em contas de dinheiro. Pro Version - adicionado prompt para usar o TaxFile do cliente ao final do ano fiscal. Obter ajuda - corrigiu o problema com os e-mails do Yahoo não sendo recebidos pelo suporte.

Fim do ano fiscal - corrija a correspondência comercial no próximo arquivo do ano. Posições abertas - limpe a grade depois de excluir os registros.

Tradestation brokerConnect import - simplifique o login e atualize as alterações no site. ETY reverso - redefine o arquivo tributário. Relatórios - Salvar como PDF - remova a marca d'água do PDF de 2015.

End Tax Year - corrige o processamento de TaxFile para um novo ano fiscal. Versão não Pro - Não peça RegCode, apenas use o registrado. Arquivo, Abrir - Use o cursor de ampulheta ao verificar a versão dos dados do arquivo.

Versão Pro - arquivo atualizado, registro Open / Convert TaxFile.

- Adicionado item de menu "List TaxFiles" no menu Arquivo. End Tax Year (Ano fiscal final) - correção para bug de correspondência de comércio de arquivo criado no próximo ano. Desfazer - ativou o botão Desfazer para arquivos que excederam o limite de registro de assinatura.

Arquivo, Novo - cria arquivos criptografados e registra-os automaticamente. Relatório de futuros - correção para EIN / SSN ausente e TaxYear no relatório de futuros EIN / SSN - ler / salvar EIN / SSN do arquivo em vez de Regsitry.

Finalizado a versão de 2015 do formulário 8949 - permitir que os usuários encerrem o ano fiscal de 2015. Adicione suporte MTM ao TradeLog 1500 - permita que os usuários do TradeLog 1500 usem métodos de contabilidade do MTM. Links fixos na página inicial - permitem que os usuários acessem recursos on-line. Corrigir problemas de conversão de arquivos - corrigidos erros relacionados à conversão de arquivos. Impedir UNDO ETY - desabilitar o botão desfazer após o final do ano é feito.

Usuários de avaliação - registra automaticamente TaxFiles quando uma licença de software é adquirida. Importar Conta - capacidade adicional de importar uma única conta forma um arquivo TradeLog não convertido.

Arquivo, Editar - Senha opcional - novo recurso para permitir que os usuários protejam seus arquivos com senha. Edição da conta - corrige o bug quando a edição é cancelada. Obter ajuda - Enviar arquivos - atualizado para que o nome e o email sejam retirados do back office. Nome do contribuinte - atualizado para lidar com LLC, III e II. Nome em Relatórios - atualize para que o nome do Contribuinte seja usado em todos os relatórios, em vez do nome de usuário registrado. Editar ticker de registro - atualizado para que as negociações sejam reemitidas. Etrade brokerConnect import - código adicionado para garantir que o botão "Log On" seja clicado.

Arquivo, Ano fiscal final - atualização para verificação de TaxFiles disponíveis. ETrade brokerConnect import - atualização para alteração na página de login html.

Website do TradeLog Indisponível - mensagem de aviso adicionada e arquivo, abrir e arquivo desativados, funções de conversão quando o site não está disponível.

Enviar arquivos - bug corrigido para novo site. Conta, Excluir - corrija o bug ver 14.5 ao excluir contas. Erros de conversão - suporta arquivos que contenham citações em campos de texto. - salve os arquivos convertidos na mesma pasta que o original. - restaurar arquivos de backup para a pasta original, criar pasta, se não existir. Arquivo, Editar - atualizado para permitir renomeação de arquivos e alterações de segurança social / EIN. Arquivo, Ano fiscal final - atualização para verificação de TaxFiles disponíveis. Coluna de notas - erro fixo ao usar caracteres de citação em notas. Bug do MTM - atualize para que a nova versão de registro ilimitado do TradeLog inclua suporte ao MTM. File Open - atualização para abrir arquivos criados por um RegCode anterior após renovar a assinatura do TradeLog e obter o novo RegCode.

Enviar arquivos - atualizados para a nova segurança do site. Arquivos da versão de teste - corrigiu problemas ao abrir arquivos com a versão registrada quando o arquivo foi criado com a versão de teste. Abrir arquivos sem converter - atualizou a mensagem para esclarecer o que você pode fazer com um arquivo não convertido.

File Convert - conversão de arquivos atualizada, permitindo que os assinantes atuais convertam um número ilimitado de arquivos sem a necessidade de adquirir TaxFiles adicionais.

Mover registro - atualizado para renumerar e verificar novos erros após mover o registro para cima ou para baixo. Adicionar registro - manipulação aprimorada de Adicionar quando a grade é filtrada por um ticker. Formulário 8949 relatório - correção para 8949 caixas incorretas D, E, F no rodapé de formulário. Relatório do formulário 8949 - atualizou a mensagem de exportação do TXF para arquivos de impostos depois de 2012. Assistente de posições de linha de base - atualizado para oferecer suporte a corretores com o recurso AutoAssign Shorts ativado. Negative Shares - melhor manuseio de todo o programa.

Novas importações de CSV - adicionados filtros de importação para ETC Clearing, SpeedTrader (Cor Clearing) e SpeedTrader Pro (ETC Clearing). ETrade brokerConnect import - login fixo para ignorar scripts de adware. Fidelity brokerConnect import - captura a mensagem de aviso "usando o número de segurança social como nome de usuário". Arquivo, Ano fiscal final - correspondência atualizada do próximo arquivo do ano. Editar, Cortar - atualizado para velocidade. Edit, Match Tax Lots - atualizado, portanto, não pode corresponder registros com diferentes Tickers, Type / Mult ou Long / Short. Aviso Neg Share - atualizado para encontrar negociações fechadas com registros de ações negativas.

Relatório, 1099 Reconciliação - corrija para que as vendas de lavagem não alterem as vendas a descoberto no final do ano para contas MTM; correção para contas MTM Futures for MTM. Relatório, Formulário 8949 e G & amp; L - correção para erro de erro ETLFile que aparece no ver 14.1.2.2.

Editar, Combinar lotes de impostos - atualize para que os registros abertos precisem chegar antes de fechar os registros ao combinar os lotes. Relatório, MTM de Valores Mobiliários - fixe para que o Formulário 4797 O Total de Curto Prazo esteja correto quando as vendas a descoberto forem encerradas no final do ano. Relatório, 1099 Reconciliação - corrija para que as vendas de lavagem não alterem as vendas curtas do final do ano para contas MTM. Relatório, P & amp; Realizado - correção para executar o relatório várias vezes a partir da guia da conta individual. Encontrar, duplicados - atualizados para um grande número de duplicatas. Importação de TDAmeritrade - atualizada para opções curtas de atribuição automática somente na importação. Fidelity brokerConnect import - correção para o novo URL de download do csv e mensagem de aviso adicionada para o VIP Access. Scottrade csv import - correção para remoção de zeros dos preços de exercício da opção.

Arquivo, Novo - correção para que o item de menu seja desativado se o ano fiscal final tiver sido concluído no arquivo. Adicionar / Editar registros - correção para formatos de janelas de data não padrão e código errado exibidos antes de salvar o arquivo no disco. ETrade brokerConnect import - código adicionado para interceptar erros devido à página de login do Adware on Etrade. Fidelity brokerConnect import - adicionou código para capturar mensagens de erro do site da Fildeity e exibir a mensagem para o usuário. Adicionar / Importar conta - Correção para erros de adição / importação de conta ao adicionar contas na guia Todas as contas. Relatório Sec 481 - correção para o programa de bloqueio do cursor de ampulheta. Relatório Form4797 - correção para exibir todas as contas no cabeçalho do relatório, em vez de apenas as contas MTM, e remover o texto Filtrar do cabeçalho do relatório. Relatórios - atualizados para melhor gerenciamento de memória ao executar e cancelar relatórios. Importação - correção para "Não é possível importar as negociações anteriores a 12/31 .." quando importar para uma conta em branco. Relatório de G & L - correção de vendas de lavagem faltantes em opções curtas acionadas por opções encerradas após 01/31 do próximo exercício fiscal, também corrigiu o problema de negociações a curto prazo ausentes ao copiar relatórios.

Verificar descrições de estoque - função atualizada para que, ao importar, não verifique outras contas. Conta, Editar - problema corrigido em que o nome da conta é alterado ao editar a guia da conta e corrigir o SLConvert, para que ele não marque automaticamente os Atribuições Automáticas. Relatórios, Copiar para a área de transferência - atualizado para velocidade. Relatório Potential Wash Sale (Venda de Lavagem Potencial) - conserta as vendas de lavagem de opções em falta anexadas ao comércio aberto de ações e suporte a relatórios de várias páginas. Importação BOA / Merrill - atualizada para permitir que os usuários verifiquem o AutoAssign Shorts - o padrão é desmarcado. Etrade brokerConnect import - atualizado para lidar melhor com as mensagens de erro de login do Etrade. Corretor LightspeedConnect import - atualizado para capturar erros de conta inválidos. optionsHouse import - atualizado para usar agora tradeMONSTER import. Scottrade brokerConnect import - atualizado para alterações na página de login html.

Fim do ano fiscal - desative os menus quando o ano fiscal final tiver sido executado no arquivo. Botão Todos os Negócios - dados de barra de lucro / perda fixos. brokerConnect import - cursor de ampulheta fixo ao exibir a caixa de diálogo brokerConnect. Arquivo, Abrir - problemas corrigidos com exibição de lucro / perda e filtro do menu Relatórios para a guia Todas as contas ao abrir o primeiro arquivo. Janela Neg Shares - problema fixo ao clicar duas vezes no registro na janela neg shares e, em seguida, adicionar ou editar registros.

Verifique se há Ações Negadas - as ações negativas atualizadas verificam de 4 a 5 casas decimais. File, End Tax Year - otimizado para velocidade e bug fixo quando W recs do ano anterior precisa avançar para o próximo ano. Importação de BOA / Merrill - atualizada para negócios entrados pelo cliente. Editar, excluir registros selecionados - otimizados para velocidade. Editar, registro (s) - atualizado para suportar a edição de vários registros. Editar, atribuir notas - adicionada função Atribuir notas para atribuir as mesmas notas a vários registros.

Editar, Excluir todos os registros - atualizados para velocidade. Editar, Alternar Curto / Longo - atualizado para velocidade. Arquivo, Abrir - correção para o menu Editar não desabilitado na guia TUDO ao abrir o primeiro arquivo. Importação de vanguarda - atualizada para Reinvestimentos de Dividendos. Opção de vídeo Tour rápido - mensagem adicionada para visualizar o vídeo do Tour rápido ao executar o TradeLog pela primeira vez. Conta, Transferir Posições Abertas - atualizado para melhor lidar com recs de W anexados a negociações parcialmente abertas.

Editar, Copiar Registros Selecionados - otimiza a cópia de registros selecionados para velocidade. Import - cheque atualizado para negociações canceladas não correspondidas. Arquivo, Abrir - corrija para garantir que o menu Editar esteja desativado na guia Todas as contas após abrir o arquivo. Neg Share Warning - corrija para selecionar o registro com neg shares após clicar duas vezes no registro na janela Neg Share Warning, e para continuar mostrando a janela Warning.

Editar, Exercício / Atribuir - erro fixo ao tentar ignorar vários registros de estoque da atribuição. Editar, excluir registros selecionados - bug corrigido ao excluir da janela de erro.

15/07/2015 & ndash; ver 14.1.0.0 - Otimização de velocidade. Cálculo de lucro / perda de arquivo, otimizado ao abrir o arquivo. Adicionar / Inserir / Editar / Importar - rotinas otimizadas para aumentar a velocidade ao lidar com arquivos grandes. Importação de Apex - suporte adicionado para mini opções. Arquivo, ano fiscal final - erro interno fixo com grandes arquivos de dados com grande número de adiamentos de venda de lavagem. Arquivo, backup / restauração - atualização miscelânea.

Arquivo, backup / restauração - rotina atualizada. Arquivo, 1-4 - problema fixo onde os últimos quatro itens de menu de arquivos desaparecem. BrokerConnect import - correção para a mensagem "Invalid Account Number" ao cancelar a importação. Ajuda, Registre-se - conserte quando o usuário clicar em cancelar e o TradeLog entrar no modo Teste.

Corrigir para formatos de data abreviada do Windows diferentes de "mm / dd / aaaa"

Editar, ajustar para estoque Dividir - corrija o erro de vírgula quando os compartilhamentos a dividir estiverem na casa dos milhares. Localizar, transações duplicadas - atualizadas para pesquisar o arquivo inteiro sem precisar inserir um marcador.

SLConvert / Force Match Trades - problema fixo onde a comissão não é dividida apropriadamente quando se divide negociações. Por exemplo, se 1500 ações precisarem ser divididas em 100 ações e 500 ações, 1/3 do comunicado vai para o registro de 1000 ações, enquanto 2/3 serão para o registro de 500 ações, o que deve ser exatamente o oposto. Importação do Goldman Sachs - atualize para igualar e excluir transações canceladas e recalcule os preços arredondados para o centavo mais próximo por corretor. Charles Schwab import - atualiza a importação de brokerConnect para lidar melhor com os tickers de ações em falta. Relatórios detalhados da transação - atualizados para serem executados com mais rapidez. Editar, Exercício da Opção / Atribuir - corrigir para vários registros W anexados à troca de opções. Editar, modificar descrições de estoque para Tickers - corrija de forma que as opções exercidas não apareçam como as ações que precisam ser alteradas.

Edit, Force Match Trades - atualizado para corresponder apenas registros filtrados ou selecionados. Editar, Exercício da Opção / Atribuir - corrigir para vários registros W anexados à troca de opções. Editar, consolidar preenchimentos parciais - atualizados para arquivos de conta única e mensagens pop-up adicionadas quando concluídas. Editar, modificar descrições de estoque para Tickers - uma rotina muito mais rápida para pesquisar códigos da Web. Importação de fidelidade - atualizada para lidar melhor com as negociações de cancelamento, e importa descrições de ações em vez de cuspas para que possam ser automaticamente consultadas e alteradas. Apex Clearing import - atualizado para o novo arquivo Apex Activity. csv - consulte: Apex Clearing Import Guide. Importação de BOA / Merril - erro fixo em ver 14.0.4.1 os registros são importados com preços errados. Cobra import - atualizado para combinar e excluir negociações canceladas e importar descrições em vez de Cusips. Importação do Cor Clearing - atualizada para lidar melhor com negociações canceladas. tradeMONSTER import - atualizado para melhor lidar com opções - exclua zeros à direita dos preços de exercício da opção e não atribua autoatribuições para opções de índice de base ampla. Check for Update - verifique se há atualizações na inicialização somente se 8 horas tiverem passado desde a última verificação.

Arquivo, backup / restauração - atualize-o para que o backup não seja desativado após a conclusão de um backup, para que outro backup possa ser realizado em um local de arquivo de backup diferente. Conta, Editar - atualizado para que o nome da conta inserido pelo usuário não retorne ao texto do filtro. Fidelity brokerConnect import - atualizado Fidelity brokerConnect Import. BOA / Merrill csv import - atualiza para pegar venda a descoberto e cobrir informações curtas da coluna Description2, e Fix Trades Out of Order; Corrigido o erro de importação de comércios com preços com vírgulas (ou seja: $ 1.020,47). Wash Sales - correção para bug introduzido na versão 14.0.2.8 para várias negociações de recompra na mesma negociação de perdas que precisam ser alteradas para Long-Term devido ao período de espera de venda da lavagem. Editar, consolidar preenchimentos parciais - adicionada nova função para consolidar preenchimentos parciais para diminuir o número total de registros em uma conta. Ano fiscal final - problema corrigido com arquivos grandes que causam erros de memória e procedimento simplificado para acelerar o processo.

OptionsHouse import - update para usar automaticamente o filtro de importação TradeMONSTER. tradeMONSTER csv import - atualiza para importar registros de exercícios. Vanguard csv import - atualização para negócios perdidos. Edit, Split Trade Record - adicionada nova função para dividir um registro em dois registros. Exercício / Atribuir - adicionou um botão Ignorar para marcar ações que não foram adquiridas através do exercício de uma opção. Atualize para exercer adequadamente as Opções de Índice de Base Ampla.

Exercício / Atribuir - problema fixo em que outra opção é exercida ao exercer uma opção diferente depois de selecionar os registros de estoque e opção.

File, Reverse End Tax Year - renomeou o item de menu como File, Unlock / Reverse End Tax Year. Wash Sales - conserta vendas de lavagem em mini-opções com multiplicadores de contrato diferentes de 100 (ex .: OPT-10). Exercício / Atribuir - atualize para auto exercitar a maioria das opções, permitindo a intervenção do usuário quando necessário. AAAA-MM-DD Configurações de data abreviada do Windows - correção para 1099 Relatórios Recon e Gráfico. 1099 Relatório de reconciliação - correção para incluir opções marcadas para o mercado no final do ano na linha de ajuste do MTM. Importação de TradeKing / QFX - correção para opções que foram rotuladas como Atribuir em vez de comprar / vender. Importação de vanguarda - atualização para incluir dividendos reinvestidos em importação, removidos o suporte a brokerConnect. Importação Wedbush - adicionada importação de Wedbush à lista de filtros de importação.

Fim do ano fiscal - atualizado para que qualquer erro no arquivo de dados impeça que o ano do imposto final seja concluído e corrige o problema com os registros de opção W em ações em vez de contratos e corrige o problema com formatos de data abreviada diferentes do inglês padrão EUA. Importação de corretores interativos - atualização para mudança no relatório flex IB para opções de futuros. Importação do Schwab Baseline Wizard - correção para opções de importação com comissão incorreta. tradeMONSTER import - atualização para incluir atribuições de estoque (usuário para decidir se curto ou longo).

Corretor LighspeedConnect - problema fixo em que os registros de data e hora são números de 4 dígitos. brokerConnect OFX - erro de erro de data fixa ao efetuar login no OFX.

Avaliação gratuita - bug corrigido em que o teste é exibido como expirado antes de 30 dias.

Verificação do Código Reg - erro corrigido onde o TradeLog é revertido para Avaliação quando o usuário não pode se conectar ao site da TradeLog para verificar o registro na inicialização. Data de expiração da assinatura - data de expiração atualizada para anos bissextos. Fim do ano fiscal - corrija para que o ETY não seja desativado se alguns itens da Lista de verificação ETY forem falsos. tradeMONSTER import - atualiza para filtrar registros de exercícios e ajustes.

1099 Relatório de reconciliação - removeu qualquer menção à Linha 2 ou à Caixa 2. Opção Exercício / Atribuir - atualizar para lidar melhor com cenários em que há vários registros de opções para o usuário selecionar manualmente. ETrade brokerConnect import - adicionado aviso sobre o adware atrapalhando o login. Thinkorswim import - added warning about using TDAmeritrade import filter for files after 2011. tradeMONSTER import - update for weekly options.

Apex/MasterTrader/MBTrading/Penson import - changed AutoAssignShorts to true for stocks. Lightspeed import - fix for csv file format changes - updated time format and option symbol format.

1099 Reconciliation report - added numbers to check boxes. Download Latest Update - clear user cache when downloading updates. Cor Clearing / Just2Trade import - fix for missing commissions. ETrade brokerConnect import - updated performance. Lightspeed import - fix for missing OpenSSL windows library on users PCs. Updated user guide for csv file download.

Form 8949 report - fixed bug when calculating deferred wash sales introduced in ver 14.0.1.0 on 02/16/2015. Removed red and blue notes on Schedule D sample page as these no longer apply.

1099 Reconciliation report - fix for W records adding to adjustment for Option Sales not reported on 1099. End Tax Year - fixed problems with End Tax Year and IRA accounts. ETrade brokerConnect import - tweaked login connect. Lightspeed import - update for new buy/sell codes, to better handle options, and match and delete cancelled trades.

Lightspeed import - updated to autoassign shorts and calculate correct commissions. Form8949.pdf - fix to remove summary page.

Lightspeed import - updated brokerConnect, CSV import, and Apex CSV import. Fidelity import - fix for Account column in csv file. Matching Option Trades - fix for proper matching of non-USD options. 1099 Reconciliation report - do not adjust for open option sales. File, New / Edit - added support for taxpayer names like "O'Connor" and "McDonald".

Account, Edit - fix for error when selecting import filters that have parenthesis in filter name such as Quicken (QIF). 1099 Reconciliation report - added "Broker Reports Gain/Loss for Short Option Sales" and "Broker Reported options Prior to 2014" check boxes. Fix for ETY not locking out Menu items after running 1099 Recon. Adjust for Stock Split - fixed bug when trades open both long and short. ETrade brokerConnect login - fixed problem with insight. adsrvr causing login to hang. Lightspeed import - PRELIMINARY brokerConnect and csv import filters for new Lightspeed/TradeLog API. Trial mode bug - fixed bug where user installed Trial version over registered version forcing TradeLog into Trial mode. Form 8949 - fix to remove "draft" from pdf file; corrected tax year on Statement of Differences page. TXF file - added warning popup about using TXF file to file taxes with TurboTax.

2014 Final Tax Version - updated 1099 Reconciliation and Form 8949 reports.

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Get the Best Solution to this Case Study | The German Export Engine By Gunnar Trumbull-Jonathan Schlefer By Debi S. Saini.

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Multinationals often make judgmental errors regarding cross-cultural issues and the business environments prevailing in foreign countries. Honda Motorcycles and Scooters India Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Limited, Japan, established its plant in India in 1999 and made mistakes in handling people-management issues. It wanted to pursue a non-union model but failed to devise and implement an appropriate human resource management (HRM) strategy. Management was caught unaware when accumulated grievances led workers to turn hostile and form a union with the help of the trade union wing of a political party that was a partner in the ruling coalition at the federal level. The management failed to break workers’ unity either by soliciting help from the state agencies or by using the legal system to their advantage. The subsequent power struggle led to violent clashes between the workers and the police, who had been called in for protection by HMSI management. The extensive media coverage not only tarnished the company’s image, but also pressured the federal government to come to the rescue of the workers. This incompetent handling of HR issues by the company led to a long strike by the workers. The strike, besides causing substantial financial losses, also led to the emergence of a very strong union. In addition, production targets that were achieved on a daily basis before the union came into existence were seldom achieved after the conciliation came into effect. Provides insights into building and implementing a commitment model of HRM strategy, shows how employers should safeguard their interest by managing the countervailing power of workers in the Indian context, and discusses the dynamics of state power in Indian industrial relations and who can benefit from it in different contexts.

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Get the Best Solution to this Case Study | The Clonlara Hotel By John G. Wilson.

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The manager of an upscale hotel in the heart of London, Ontario – The Clonlara – wanted to apply revenue management techniques to increase revenue at the hotel. Specifically, she wanted to apply quantitative analysis to determine how many rooms to discount for a Saturday night stay.

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Models; Revenues; Simulations; Spreadsheet modeling; Statistical analysis.

Tributação de Opções de Ações para Funcionários no Canadá.

Allan Madan, CA.

Você recebeu opções de ações do seu empregador canadense? Se sim, é altamente recomendável que você repasse os pontos deste artigo. Neste artigo, explico como as opções "Tributação de Ações de Ações para Funcionários no Canadá" # 8221; afeta diretamente você.

Uma opção de ações para funcionários é um acordo em que o empregador concede a um funcionário o direito de comprar ações da empresa na qual ele trabalha normalmente a um preço com desconto especificado pelo empregador. Existem diferentes tipos de opções de ações que podem ser emitidas para os funcionários - mais informações podem ser encontradas no site da Agência de Receitas do Canadá.

Para os empregadores que desejam vender as ações de sua empresa, consulte nosso artigo "Planejando a venda de um negócio".

CCPCs (empresas privadas canadenses controladas) - opções de ações de funcionários.

Um CCPC é uma empresa incorporada no Canadá, cujas ações são de propriedade de residentes do Canadá. Por definição, um CCPC é uma "empresa privada" e, portanto, não é listado em uma bolsa de valores pública como a Bolsa de Nova York ou a Bolsa de Valores de Toronto.

Quando seu empregador concede ou dá uma opção de ações para você, você não precisa incluir nada em seu lucro tributável naquele momento. Em outras palavras, não há nenhuma conseqüência fiscal para você na data da concessão.

Quando você exerce uma opção de compra de ações, o que significa comprar as ações através de seu empregador, você deve incluir um benefício tributável em sua receita. O benefício tributável é igual à diferença entre o preço de exercício (ou seja, o preço que você pagou para comprar as ações) e o valor de mercado das ações no momento da compra.

Há um diferimento de imposto especial para funcionários de CCPCs. O benefício tributável pode ser adiado para a data em que as ações são vendidas. Isso torna mais fácil para os funcionários pagar impostos porque eles terão dinheiro disponível com a venda das ações.

Opções de ações do empregado CCPC.

Vamos ver um exemplo. Suponha que o preço de exercício seja de US $ 3 / ação e o valor de mercado seja de US $ 10 / ação. Quando você exerce o seu direito de comprar as ações, um benefício tributável é realizado por US $ 7 / ação (US $ 10 menos US $ 3). Lembre-se, para os funcionários da CCPC, o benefício tributável é adiado até que as ações sejam vendidas.

Se você atender a uma dessas duas condições, poderá reivindicar uma dedução de imposto igual a ½ do benefício tributável, ou US $ 3,50 neste exemplo (50% x US $ 7).

Você manteve as ações por pelo menos dois anos depois de comprá-las. O preço de exercício é pelo menos igual ao valor justo de mercado das ações quando elas lhe foram concedidas. Implicações fiscais para opções de ações de funcionários CCPC.

Empresas Públicas - Opções de Ações para Funcionários.

Agora, vamos passar para a tributação de opções de ações para empresas públicas.

Na data em que você recebe ou recebe opções de ações em um empregador que seja uma empresa de capital aberto, você não tem uma consequência tributária pessoal. Entretanto, na data em que você comprar as ações, você receberá um benefício tributável igual à diferença entre o preço de exercício das ações e o valor de mercado das ações naquela data. Você não pode adiar o tempo desse benefício tributável.

Suponhamos que você trabalhe para a Coca-Cola Canadá e o valor justo de mercado das ações hoje seja de US $ 30 / ação. De acordo com o contrato de opção, você pode exercer ou comprar as ações por US $ 10 / ação. Portanto, o benefício tributável que será incluído na sua renda no momento do exercício é de US $ 20 / ação.

Depois de comprar as ações, você tem duas opções: (A) Você pode vender imediatamente as ações ou (B) Você pode segurá-las se você acredita que elas aumentarão em valor no futuro. Se você optar por manter as ações e vendê-las no futuro com lucro, o lucro obtido com a venda será classificado como ganho de capital e sujeito a imposto. Independentemente de você vender as ações ou retê-las, os impostos serão deduzidos do seu salário para contabilizar o benefício tributável que você percebeu na compra das ações.

Árvore de decisão para opções de ações de funcionários para empresas públicas.

No entanto, não segure os compartilhamentos por muito tempo depois de comprá-los. Isso ocorre porque, se o preço do estoque cair, você ainda será responsável pelo benefício tributável realizado na data da compra.

Você pode reivindicar uma dedução fiscal para ½ do benefício tributável realizado na data do exercício. Para fazer isso, todas essas três condições devem ser atendidas:

Você recebe ações ordinárias normais mediante exercício O preço de exercício é pelo menos igual ao valor justo de mercado das ações no momento em que as opções foram concedidas Você negocia de maneira direta ou de terceiros com seu empregador.

Aviso Legal.

As informações fornecidas nesta página destinam-se a fornecer informações gerais. A informação não leva em conta sua situação pessoal e não se destina a ser usada sem consulta de profissionais contábeis e financeiros. Allan Madan e Madan Chartered Accountant não serão responsabilizados por quaisquer problemas que possam surgir do uso das informações fornecidas nesta página.

SOBRE O AUTOR.

ALLAN MADAN

Allan Madan é um CPA, CA e fundador da Madan Chartered Accountant Professional Corporation. A Allan fornece valiosos serviços de planejamento tributário, contabilidade e preparação de imposto de renda na área da Grande Toronto.

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Comments 113.

Thank you for the very detailed explanation.

Another question is will [50% of] the gain from public traded company stock option be able to offset the previous year’s capital loss?

Very insightful article,

I was wondering if there is any capital gains tax on appreciated stocks when giving it to someone else as a gift?

Stocks when given as a gift are not subjected to any capital gains tax even if they have appreciated in value.

Allan Madan and Team.

Do I have to pay taxes on capital losses when I exercise my shares?

No you don’t have to pay any taxes because there is no capital gains, but rather you get tax benefits for selling it at a loss.

Allan Madan and Team.

Hi Allan, just to clarify, if I have capital losses on my stocks, I can deduct that from my capital gains to minimize my taxes on the capital gains even if they were separate stocks?

Yes the source of either the capital gain or loss is irrelevant, since you are expected to report your total capital gains and capital loss on your income tax return. It is important to note that for tax purposes, capital losses are only reported on items that are intended to increase in value. Eles não se aplicam a itens usados ​​para uso pessoal, como automóveis (embora a venda de um carro com lucro ainda seja considerada receita tributável).

Allan Madan and Team.

How would the CRA calculate the appreciated price of stocks to coincide with inflation?

The CRA has there own calculation methods especially for stocks that individuals may have held for long periods of time. It is best to directly contact the CRA for more specific information.

Allan Madan and Team.

Hi Allan, are there any taxes on stocks received from a deceased individual through their will in cases where the stocks have dramatically increased in value?

The stocks will only be subjected to capital gains tax when and if you decide to exercise/sell the stocks. There are no taxes on the transfer of assets through wills.

Shouldn’t the assets on death be deemed disposed of, hence there will be gains on the stock?

What would happen if the options were still not exercised by the time of death?

Obrigado pela sua pergunta. Upon death there is a deemed disposition of all of your assets at their fair market value at that time, except for assets willed to your spouse. If you did not exercise your stock options before your death, then they will likely expire and become worthless, unless the options agreement states that a surviving beneficiary can assume the options in your place.

Hi Allan, as part of my employment contract, I have an option to receive shares or $10000. If I chose to receive the shares but later changed my mind since the values of the stocks are projected to be decrease in value, would I be taxed on the $10,000?

If you choose to re-take the $10,000 then it would be included as part of your total taxable income as long as you received it within the taxation year. If it is a possible option, you can choose to defer the received income for next year as to avoid paying less taxes on it this year if you project your income to be lower.

Allan Madan and Team.

Are there capital gains loss for issued stocks in cases where the company has filed for bankruptcy?

Capital loss is only applied to cases where you have actually sold the stock. Luckily, for you there is a provision under section 50(1) of the income tax act that does allow for some tax relief. When this is applied, the shares will be deemed to have been disposed of for proceeds of nil at the end of the year, and to have been recacquired for adjusted cost base (ACB) of nil immediately after the end of the year. As a result, you will be able to realize the capital loss on the stock. The superficial loss rule does not apply in situation.

Allan Madan and Team.

What if my company is being taken over by several investors and is going from a public to a private company, when they own 90% of the shares, I am force to sell mine at below market value, do I get any tax relief in terms of capital losses?

IF you are force to sell your shares then it is illegal for them to pay at below market value for the remaining shares, you should be able to get at least market value you for them. IF not, you can deduct your capital loss against your capital gains for tax relief.

Allan Madan and Team.

I did some contracting work for a small startup tech company. Since they had no money they paid me in shares, if and when they take the company public, would I have to pay taxes then?

You would only have to pay capital gains tax when and if you decide to exercise/sell your shares. If you continue to hold onto them, you will not be subjected to any taxes.

Allan Madan and Team.

Is it possible to hold my stocks within a TFSA account? how would the accrued interest on these stocks be taxed?

Yes common shares generally qualify for TFSA investments, however those shares must be listed on a designated stock exchange. If they are not listed, then they will be categorized as a non-qualified investment inside your TFSA and you will be hit with some severe penalties.

The taxation of the accrued interest would be the same for any type of investment contributions made to your TFSA.

Allan Madan and Team.

What would be classified as a designated stock exchange? what about penny stocks?

Hi Mahmoud, the Canadian Department of Finance has a list of 41 designated stock exchange on it website here fin. gc. ca/act/fim-imf/dse-bvd-eng. asp.

Penny stocks traded on pink sheets are not on a designated stock exchange but any penny stocks (people disagree on its definition) that are listed on any of the designated stock exchange are eligible for TFSA investments.

Allan Madan and Team.

What if a stock is listed on multiple exchanges some of which are not listed, how would the department of Finance categorize this?

As long as the stock is listed on at least one approved stock exchange that is recognized by the department of Finance, it will qualify for TFSA investment.

Allan Madan and Team.

I currently work for a CCPC, and they have offered me $5000 in stock as compensation. As I am new to world of stocks, I am wondering what to do with these. What happens when I exercise my stock options? Are there any tax implications?

Hello, and thanks for your question.

Stock options are one of the most popular form of non-monetary compensation that employers offer. They are a taxable benefit, and should be included on your total employment income on box 14 of your T4 slip. Here’s how they work. An employee is given the option to buy shares of a company at a future price. At this stage, there is nothing to report on income.

When you buy the stocks at that agree-upon price (called exercising your option), the taxable benefit comes into play. This benefit is calculated as the difference between the fair market value of the shares on the date you purchased the shared and the price you paid for them. As your employer is a CCPC, you can defer all your taxable benefit until you sell your shares.

I worked for a company back in 2003 that had an IPO. Employees were awarded stock options, and I was given 2,000 shares. I still have the letter from the man who was then president and CEO. The length of the contract was 25 years. However, I ended up leaving the company a few months later, so it appears as if I am only 25% vested. The company has now been split into two separate companies.

Do any of my stock options have value today? Can I cash out my vested portion?

In your case, you would have 25% of the original contract for 2000 shares. The main question you need to answer here is which company took over the stock. If the company split into two, who took over the shares? Also, did the company that took over shares covert the option contracts? Sometimes the employee stock option plan (ESOP) will not have the options converted if the company is broken up.

If the company did not give you options but just 2,000 shares, you would need to know what the shares converted into. Most companies only give option contracts to executives, because they are not actually holding onto the stock. Most option plans do not have a vesting, but the ESOP will.

I would call the company that holds the stock, and find out what your options are. If the company split in 2003, it will probably take a long time to figure out the information. Companies are only required to keep records in the front office for 3 to 5 years, depending on the type of record. Therefore, the sooner you do this the better.

Oi Allan My company is offering me some stocks as compensation. What are some things I should know before I take them?

A stock option plan allows your employer to sell you shares at a predetermined price (known as the exercise price). Normally, you’ll exercise your right to buy shares only when the fair market price is higher than your exercise price. After all, if your exercise is 15$ a share and the market value is only 12$, you are overpaying! When considering take an employee stock option, you want to be confident that the shares in the company are going to increase in value. Also, you want to be sure that you can sell the shares later. If your company is private, make sure you have someone to sell those shares to. It will do you no good to have a lot of shares worth millions if nobody is buying.

Allan Madan and Team.

Oi Allan I’ve signed up for an employee stock sharing plan on TFSA with my employer. As per the agreement, he matches 5% of my contributions. I have received a T4PS with an amount on box 35 that I need to include on my tax return. I thought the money you earn from a TFSA is tax free, was I wrong?

Only the interest, dividends, or capital gains within a TFSA are tax free. Amounts contributed to it are considered after tax, and thus are not deductible from income. On the other hand, withdrawals are not considered income.

Your employer makes their matching contributions before tax, which is why these contributions are reported as additional income. This is why they are reported as additional income, and have to be reported on your tax return. Because of your employer’s contributions, it is quite easy to over contribute to your TFSA’s. Doing so may trigger penalty taxes, so do be careful. If you have any questions regarding this or any other tax-related question, please do not hesitate to ask me.

Allan Madan and Team.

I’m not very familiar with stocks or how they work but they seem intriguing to me. How would it work if I owned stock with the company I worked for, got it at a discounted price as per the stock options, but then was terminated. Would I still be in possession of those stocks and would I still have to pay taxes on them? Or would I lose the stocks since I was no longer employed with the company?

Usually employees can and do keep the employers stock options even after termination.

In the year you exercise your options you will have an income inclusion which will be the difference between the exercise price less the FMV of shares when the options were exercised.

When you eventually sell the shares there will be a capital gain or loss.

The adjusted cost base will be the FMV of the shares when you exercised the options.

If the proceeds of disposition are more than the ACB you will have a capital gain.

If the proceeds of disposition are less than the ACB you will have a capital loss.

So if I’m married or living with a common-law partner, and she is making considerably less than I am. Would I be able to share some of my dividends with her so that she can benefit from the tax savings that come along with the stock options or would that only be applied to my own person return?

Under the Canadian tax system, there is a provision that allows you to transfer all of your dividend income to your spouse so that your spouse can recognize 100% of your dividend income if certain conditions are met. This may or may not be advantageous depending on you and your spouse’s tax situation and we’ll need more information.

Hi, I was wondering if it would be worthwhile to invest some of my employee shares into my RRSP rather than sell them. I ask this because a colleague of mine buys his employee shares at a reduced price and then sells them at around the beginning of the year. From there he sells the shares, puts the money in his RRSP and then buys the shares again within the RRSP. He says this doesn’t save him much on taxes but it does help the return as he’s able to store money in his RRSP and watch it go untaxed. Is this something that is plausible?

One thing to remember when dealing with RRSPs is that they are tax deferrals, not tax free. This means that you can save taxes on them in the meantime by keeping the money in the RRSP, but once you make a withdrawal you will have to pay taxes on those withdrawals.

There really isn’t any way to avoid paying taxes on public corporation employee shares, but there is a way to avoid taxes in the future on those amounts. If you contribute the shares directly to a Tax Free Savings Account, you can save on paying additional taxes in the long run. You would still have to pay taxes on the capital gains you incurred, and there would be no refund, but whenever you withdraw the money from the TFSA it would be free of tax. Espero que isto ajude.

My wife is currently on maternity leave until March. Therefore, she is on EI. The management of her company decided to allow her to cash in her stock options by December. We are not sure what the tax implications of this will be. The finance department of the company said that the income would be reported in the T4 as employee benefit. Will she have to report this income to the CRA, and will it reduce her EI benefit? She is in the top income bracket.

Options are not treated as capital gains, as you cannot deduct losses against them. They are, however, taxed as ordinary income. Also, they are subject to a “security option deduction” (line 249 on your tax return) if certain conditions are met. Half of your wife’s benefit she receives from cashing the option is included in her taxable income for the year. If she is in the top bracket, one-half of her option benefit could be taxed at 46%.

Allan Madan and Team.

Last year, I have exercised some deferred stock options. How do I report these?

If you received a T4 from the employer who also issued the stock options in your name, then the respective gain or loss would be reported as part of your T4 slip (as well as the stock option deduction in box 39 and 41). In addition, you will be able to claim 50% of the amount from line 4 of Form T1212, Statement of Deferred Security Options Benefits.

Allan Madan and Team.

I received employee stock option when my company was private and now it went IPO. So its publicly traded, I still haven’t “exercised” my stock options and it is set to expire soon. I am thinking of doing “Exercise and hold”, when I do that I will have to pay the company the excessive price but will I also have to pay tax right away (even if I am not selling, just holding?). Also how can I deffer the taxes so I can split the taxable profit to multiple years so I pay less taxes?

Any info of the “Exercise” and hold” option would be good.

I received employee stock option when my company was private and now it went IPO. So its publicly traded, I still haven’t “exercised” my stock options and it is set to expire soon. I am thinking of doing “Exercise and hold”, when I do that I will have to pay the company the excessive price but will I also have to pay tax right away (even if I am not selling, just holding?). Also how can I differ the taxes so I can split the taxable profit to multiple years so I pay less taxes?

Any info of the “Exercise” and hold” option would be good.

What are the tax implications of trading stocks in a non-TFSA account with a brokerage, when it comes to end of year taxes on profits? Is there a particular rate for capital gains? Also, do I keep track of my gains and losses myself?

50% of your gains are counted as taxable income. You can deduct past capital losses from current capital gains. After factoring in capital gains, if your personal income is below the exemption level you won’t pay any taxes on it. You also don’t have to pay taxes if you haven’t sold the stock this year. Earnings from dividends are taxed differently, and have different rates depending on whether they are considered eligible or inedible.

Finally, keep track of all your gains and losses. Your institution may provide you with a summary, but will not give you a formal t-slip.

Allan Madan and Team.

I received a company stock option some time ago. It has a strike price of $3.10, and a vest of $30,000 after each of three years. The most recent yearly dividend was $0.69, and six months ago the company offered to buy it back. Though they offered $2.80, nobody sold their shares. What, if anything should I do with these? What are the tax rules surrounding my situation?

Tax rules for stock options in Canada differ, depending on whether the company is a CCPC. If it is, there is no immediate taxable gain. The gain is taxed when shares are sold, not exercised. This significantly reduces the up-front difficulty of purchasing stock options. Also, if shares are held for at least two years after the exercise, half of the initial gains are tax-free.

If it is not a CCPC, the taxable gain may be due in the year of exercise. Many companies in this situation offer near-immediate partial buyback to help offset these costs. The difference between the market value at the time of exercise and the value at the time of sale is taxed as income for non CCPC’s.

My advice is to exercise and sell if the stock price is higher, and take your cash profit. Then, use that profit to buy shares and collect dividends. You will get taxed on the profit from selling your options, and later on the dividends.

Allan Madan and Team.

I work in Canada for a company that trades in the US. One of the benefits I get from my job is that I get restricted stock units (RSUs) once a year. These are connected to an ETrade account that the company arranged for me. I have filled out the W-8BEN tax form. I believe this is the correct form.

I just found out that there was an automatic ‘sell to cover’ action that sold enough stock to account for 40% of the value that had vested. Does this amount satisfy Revenue Canada when it comes to tax time? Or do I need to put some of the remainder aside as well? I asked an accountant, and he said that since it is a capital gain that the CRA would tax me on 50% of the value…is this correct?

Also, the stock vested at 25.61 (which is the value at which the sell-to-cover happened), but by the time I could sell, the stock was at 25.44. Does that have any bearing on my situation?

The fair market value of the RSU at vest time is treated as regular income paid to you by your employer and will be taxed at your marginal rate. 40% should be enough withholding to satisfy your personal income tax, depending on what your total income for the year is. Since it vested at $25.61 but you sold it at $25.44, you’ll be able to claim a capital loss (or carry it forward to a year where you have gains you can offset with it).

Allan Madan and Team.

I work for a start-up company, and part of my compensation is stock options. Assuming that we get a chance to exit (big assumption, of course), I stand to make a large sum of money when I exercise them. What happens at this point with regards to tax? As I understand it, all growth from the exercise price will be taxed as capital gains. Isso está correto? If so, I would end up losing a large percentage in taxes.

Is it possible to exercise the options sheltered inside a TFSA or RRSP to avoid capital gains? Is there anything I’d need to do beforehand (e. g. “transfer” the options un-exercised into a TFSA) to prepare for that?

Your options are taxed at capital gains rates (i. e. 50%) since you get a 50% deduction on the income inclusion assuming you meet certain conditions. Regarding holding them in a TFSA or RRSP, make sure that you ensure they will not be considered a non-qualified and/or prohibited investment. In general, you need to ensure that you and non-arm’s length parties (such as relatives) will not own more than 10% of the company.

However, you may not be able to get them into a TFSA without paying some tax on them. This is the point of a TFSA; the contributions are after-tax. You could possibly exercise the option, pay the (income) tax, then transfer the shares to a TFSA. However, this is assuming the stock price goes up after you exercise.

Allan Madan and Team.

Hello, in 2012, I bought 1,000 shares at my company at $10 each. In 2013, the stocks shot up to $40 a share. Some of my co-workers and I decided to sell the shares, but then the stocks declined back down to $10 a share. How should we handle this situation?

Hi, In this case you should report a taxable employment benefit of $30,000 on your T1 return. This represents the profit earned on the shares up to the date of exercise. In addition, you should report a capital loss of $30,000 because the shares dropped in value when you sold them. The bad news is, the capital loss of $30,000 cannot be offset with the taxable employment benefit of $30,000.

If you want, you can contact your local CRA Tax Services office, explain the situation, and they will determine whether special payment arrangements can be made.

Allan Madan and Team.

My wife will need to exercise some options from her former employer this week. It’s a publicly traded company. I understand she will have pay taxes on the difference of price between the exercise price and the current value. My question is who is required to send the tax amount to the CRA: The employer or her.

If it’s the employer, does that mean they can withhold some of the shares as payment to the CRA?

Generally, the difference between the fair market value of the shares at the time the option is exercised and the option price will give rise to a taxable benefit. This taxable benefit is included in the employment income when the stock option is exercised (i. e. it is added onto the T4 just like a salary or a bonus).

Since this amount is like a salary, the employer has to make payroll remittances on it (CPP, EI and income tax).

Hi, I was just wondering if there are any benefits of transferring the stocks from my employee stock savings account to a TFSA.

Hi Carla, if you have room to contribute to your TFSA and you decide to transfer your stock over to the TFSA, it will be deemed that the stocks have sold for a capital gain (or capital loss). This means there may be taxes you will need to pay on the transfer in the tax year. If you are able to pay a small amount of capital gain now, your future returns (ex. Capital gain, dividends) will be tax free.

Contact me or your bank directly before deciding to make the transfer. It’s always beneficial to get professional help so that you don’t run into any problems.

Allan Madan and his team.

In your public company example the Coca cola shares are on a US exchange, so presumably the transactions will occur in the USA through some sort of US trustee or brokerage. Does that mean a US tax return needs to be filed for the income earned in USA?

Under the Canada – US tax treaty, Canadian residents that incur capital gain on US stock investments are not required to file US tax return. You will simply report the capital gain on your Canadian tax return and pay tax to Canada.

Hi, Could you please tell me what are the cost implications to both an employer and employee in a stock options plan.

Under a stock option plan, at the time the stock option right is transferred to the employee, there is no effect on the employee’s tax situation until the employee exercises or disposes of the option. If the employee exercises the option below the fair market value of the stock, the employee will receive a taxable benefit. This would be an employment benefit equal to the amount by which the value of the shares at the exercise date exceeds the total amount paid.

As an employer, stock option plans are non deductible unless they are paid in cash.

Hello Allan, I own a start-up company and will be hiring employees soon. I just want to plan ahead so I don’t run into problems down the road. What options should I have for employee stock?

Hi Veronica, there are three main plans that you can deploy for your employee stock options. Eles são os seguintes:

1) Employee stock purchase plan (ESPP): This plan will allow your employees buy shares at a discounted price. Many ESPPs provide a buffer in the purchase of the shares: an employee will pay a certain amount over a period of time and at pre-specified periods, the employees can purchase shares at a discount using the accumulated payments. O benefício é igual ao valor das ações, menos o valor pago.

2) Stock bonus plan: under this plan, you will have to agree to give the shares to your employee(s) free of charge. In turn, you agree to sell or issue shares to the employee for no cost.

3) Stock option plan: This plan allows your employee(s) to purchase shares of your company or of a non-arm’s length company at a predetermined price.

Hi, I am moving to the States soon, but I still have stock through my current employer. Do I need to sell my stocks now? Or can I keep the stocks and deal with them when I get to the States?

Hello Craig, if you hold stock options at the time you become a non-resident, there should be no tax consequences at the time you move, but you will be liable for an employment benefit on exercise of the option.

On the other hand, if you have previously applied to acquire CCPC shares to defer employment income again before you become a non-resident, you will face departure tax on the shares that you hold. The gain or loss on disposition of the shares will be reduced by the inherent adjustment for employment income.

Hi Allan, is there a tax advantage to selling shares of my corporation?

Hello Jaimer, yes, in some cases there would be a big tax advantage for selling the shares of your corporation. If you have a qualified small Canadian-owned business or qualified farm property, you will be able to claim the capital gains exemption that will come from the sale of your shares. The capital gains exemption is $800,000 in vale for dispositions occurring on or after January 1st, 2014. This one idea could save you around $200,000 in income taxes.

You should note that selling shares is a lot harder than selling assets for your company. You may have to lower the price of your shares, and in turn, depending on your personal tax situation, you may not be able to make use of the capital gains exemption. The government restricts the use of the exemption in some cases where the taxpayer have claimed investment losses.

Hi Allan, is there any way to defer the taxes I pay on my stock options until I sell them?

Hi Kasey, if you work for a Canadian-controlled private corporation, you will be able to defer the tax on the employment benefit until the shares are sold. The CRA realizes that most people cannot find a way to pay tax on $50,000 of noncash compensation, which is why they allow you to defer the tax. However, if you do not work for a Canadian-controlled private corporation or a publicly traded company, no deferral will be available.

Hello Allan, I made the election to defer income taxes on my shares in a public company. The stock value has since declined and I don’t have enough money to pay the income taxes that I have deferred. Is there any way to postpone the payments until I get enough money to pay them off?

Hi Sarah, yes there is temporary relief that the CRA provides for employees who have made an election to defer income tax on declining stock options. The relief is intended to ensure the income taxes payable on the benefit arising on the exercise of the stock option does not exceed the proceeds of disposition received when the optioned securities are sold while taking account of the tax benefit resulting from the deductible capital loss on those securities.

To take advantage of this relief, the election must be filed no later than your filing deadline for the taxation year during which the shares are sold, which is almost always April 30th.

Hello Allan, I was thinking of giving shares to my employees instead of stock options. I know some of the advantages to this method, but not a lot about the disadvantages. Can you tell me a few disadvantages of giving shares to employees?

Hi Dan, here is a list of potential disadvantages for issuing shares to your employees.

• Deferred tax liability if shares are bought below fair market value.

• May need to defend the fair market value. You may also need an independent valuation, although that is very rare.

• You need to make sure that shareholder agreement provisions are in place.

• Issuing shares at very low prices on a cap table may look bad to new investors.

• More Shareholders to manage.

Here are some advantages of giving out shares.

• You can get up to $800,000 in life-time tax-free capital gains.

• 50% deduction on gains if shares held for more than two years or if shares were issued at FMV.

• Losses in a CCPC can be used as allowable business losses if the business fails.

• Can participate in Ownership of company.

• Less dilution than if stock options are issued.

I work for a public company and received 1000 shares of stock options. Let’s say the exercise price was $10/share, and the market value of the share was $13/share (at the time the shares were exercised). I paid necessary tax at the time of exercise, but I did not immediately sell my shares. If the shares go up in value to $15/share and I sell all my shares at this time, do I have to pay any taxes further taxes?

In your example, if you decide to sell your shares at $15, you will be taxed on the capital gain as follows:

Adjusted Cost Base: $13 (FMV of when you exercised your shares)

Proceeds of Disposition: $15 (FMV of when you sold your shares)

Inclusion Rate: 1/2.

Taxable Capital Gain: $1 / share you sell.

You record a gain of $2 for each share you sold and will have to pay $1 in taxable capital gains for each share you sold.

I have a question concerning taxation of stock options.

I work for a public company and was granted 1000 shares of stock options at the exercise price of $10/share (according to the agreement). The market value of the shares was $13/share (at the time the option was exercised). I paid the necessary taxes at the time of exercise and the employment benefit was included in my income on my T4 slip. If I hold on to the shares and the shares go up in value, and then I sell the shares at $15/share, do I need to pay taxes for the additional gain of $2/share?

Capital gains tax will apply to the additional $2 per share that you profited on sale.

Can I transfer Stock Options given to me to my personal company 100% owned by myself and my wife? Or to a company 100% owned by myself?

You can transfer stock options given to you to your corporation. However, there will be a capital gain realized upon the transfer. The amount of the gain will be equal to the market value of the options less the amount you paid for them. If your employer issued the stock options to you, it’s imperative that you read the options agreement to ensure that there are not any restrictions on transferring them.

There’s no tax savings in making a transfer of stock options to a corporation.

Quick question about employee stock options. I was wondering what the requirements are to deduct the stock option employment benefit?

As an employee who exercises options and acquires shares, you are entitled to an offsetting deduction that equates to one half of the employment benefit amount. This is given to you as long as these conditions are met:

& # 8211; the employer corporation is the issuer of shares.

& # 8211; the shares are not “preferred shares” but instead “prescribed shares”

& # 8211; the option exercise price must not be less than the fair market value of the shares at the time the option is granted.

& # 8211; the employee deals closely with the employer corporation.

I hope this helped,

I am ready to declare my security option benefit and I work for a private Canadian corporation – how do I go about this?

Declaring your security options benefits depends on the type of company issuing the benefits. If the company is a Canadian controlled private corporation, you have to report the benefits the year you plan on selling your securities.

I exercised options using a net exercise (they used part of my available options to purchase shares and provided me with a certificate for those shares) last year but on review the company did not report the taxable benefit on my T4. The stock is for a publicly listed company on the TSX. How should this be cleared up with CRA? Isn’t it the companies responsibility to report this as income on my T4?

It’s the company’s responsibility to report the taxable benefit realized upon exercising employee stock options. You should speak with your employer and ask them if they will be issuing amended T4 slips to their employees.

I was just wondering what kind of stock options can people generally choose from?

Employees are generally issued a variety of different options under one of three types of plan. There is the Employee Stock Purchase Plan (ESPP), Stock Bonus Plan, and the Stock Option Plan. For further details about each of these options, please visit the Canada Revenue Agency website.

I have read a lot about stock options for workers in Canada. I am just wondering why Canadian employers initially grant these options to their employees.

By granting stock options it ensures keeping good workers. Employers typically want their employees to feel like owners in the business. They also want skilled individuals, thus offering compensation beyond a salary is an incentive to stay loyal.

Quick question! What makes a stock option very “tax-efficient”?

Let’s use an example to answer this question! Suppose you exercise your stock option for $30,000 while the market value is $40,000 – this ultimately means you’ve received a benefit from your employment! You will face tax on the $10,000 benefit, – this is where the idea of ‘stock options’ should be of interest to you. Considering certain conditions are met, you can claim a deduction equal to 50% of the stock benefit. By including this $10,000 on your tax return, you could deduct $5,000. Thus, making a stock option very “tax-efficient”!

What conditions exist to ensure that I am entitled to the 50% deduction?

There are three conditions that must be met for you to be able to claim an offsetting deduction equal to 50% of the stock option that you report as income. The three conditions are as follows:

Eu. You cannot be in control of the corporation – you must deal with the company at arm’s length; on a third party basis.

ii. The shares must be common shares, not preferred shares.

iii. The stock options cannot be in the money on the the money on the day the option is granted.

I work for an NYSE listed company and received stock options as part of my compensation plan. I went on maternity leave last year and they had extended my vesting for the same amount of time (i. e. extended the year). Is this the same treatement in Canada or is this a US common occurance, perhaps company specific? Qualquer ajuda seria muito apreciada. - C.

As far as I am aware, this appears to be a company specific policy.

What is your take on the Liberal government’s pre-election promise to change how stop options are taxed?

I have unexercised employee options granted to me before the company I work for went public (IPO). Eu sou.

concerned that the changes can have a significantly negative effect on the tax on the gains of those options.

if/when exercised next year (stock price is currently too low to exercise now, or I would).

1) Do you think the federal government will go ahead with these changes? I have read articles that make it.

sound like it may not be worthwhile to go ahead as companies would logically have to be given the ability to.

deduct options as an expense, which is now not the case.

2) Do you think there will be any grandfathering that may benefit situations such as mine?

3) Do you think the changes will apply to pre-IPO companies as well as public companies?

4) If the federal government does go ahead with changes, do you think the changes will be exactly as.

promised, or might there be some lessening of their impact (e. g. higher annual exclusion)?

These are excellent questions. While the liberal government has expressed its intention to make employer stock option benefits 100% taxable, they have said that this high inclusion rate will only apply on gains in excess of $100,000. Therefore, most Canadians will not be affected. I suspect that the liberal government will go head with these plans, but I’m not completely certain.

The finance minister announced that options granted prior to the date on which the new stock option rules come into effect will be grandfathered. He did not specify whether the rules will be different for pre-IPO companies or public companies.

i work for a company that allows me to purchase stock options. they will match up to 30%. i am about to be laid off. better to cash out now? not sure if ei benefits will be reduced if i was to cash out while claiming ei.

Obrigado pela sua pergunta. If your total income for the year including taxable stock option benefits and EI payments does not exceed $61,000, then your EI payments will not be clawed-back. I suggest that you first calculate the total taxable benefit from cashing our your stock options before you decide whether or not it makes sense to cash out.

Hello Allan, can either stock option proceeds (or the options themselves) or ESPP stocks or proceeds be transferred or gifted to as spouse for taxation purposes ? The stock are in an American company which has been purchased and these stocks will be paid out all at the same time.

They can be gifted to a spouse at cost, so that a capital gain will not arise on the transfer. BUT, any income or gains earned by the recipient spouse on the transferred stocks / shares must be attributed back to the transferor spouse. So you can’t save taxes by way of a gift to a spouse.

So what if you have a taxable benefit on your t4 in 2015 and then in 2016 the company goes bankrupt. Can I claim a loss for those shares on my personal tax in 2016?

In that case, claim a capital loss. Capital losses are only deductible against capital gains.

Taxable Compensation on Statement on Publically traded – Employee Stock Option is it part of Purchase Price?

The taxable portion of stock-based compensation included in your T4 becomes your cost basis for the shares you received, assuming you have not cashed out and are still holding these shares.

I realized a gain of the sale of a non-qualified stock option from a US public company. I am a Canadian citizen working for a subsidiary of the US public company, in Canada. ON the sale of the options, my broker withheld income taxes at 37%. How do I report these taxes paid on my canadian return?

Claim a foreign tax credit on form T2209.

If I transfer my shares to my wife as a gift will I be able to avoid taxes on them?

Hi Paul, you can automatically rollover your shares to your wife at cost. However, any gains realized upon their sale will be taxable to you.

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E-Trade (now iTrade) Canada Review.

Nobleea, a regular reader here, posted a comment about being a user of E*Trade (now iTrade) Canada. Since I’ve never used E*Trade before, I thought it would be great to get a review from a long time user. Thanks Nobleea!

Frugal Trader asked me to do a review of E*Trade (i-trade), as I am a customer. I will try and follow the same format as he has used for previous brokerage reviews. I have been a customer of E*Trade since 2003, when I deposited a small $1100 cheque to fund my account.

Like most online brokerages, they offer several account types:

Cash (both US and CAD). This is the basic account for trading stocks and mutual funds. Registrado. For self directed RSP users. Poupança. E*Trade has a Cash Optimizer savings account with a pretty high interest rate. 4.15% at the moment I believe. Opções For trading and creating options on popular stocks. Margem. Trading on margin.

The last two accounts are a little bit more complicated. I have had a cash account since 2003 and have just opened a registered account. You can trade US equities and funds in a CAD currency account, but you obviously get hit with the forex ( >1% each way ) for each trade. You can have both CAD and US cash accounts simultaneously.

Commissions on Equity Trading, there are two price levels:

$19.99/ trade for 1000 shares (2c per share thereafter for shares over $1, $19.99 flat for shares under $1) for accounts with less than 30 trades/quarter or less than $50K in account assets (for US equities it is $19.99 flat regardless of equity price or amount of shares) $9.99 flat fee/trade for accounts with more than 30 trades in the previous quarter or more than $50K in account assets. There is no difference in price for limit or market orders. They also offer Trailing Stop Orders which allows you to enter a stop order with a trigger price that changes with the market. E*Trade does dividend reinvestment, but will only purchase whole shares , with the remained being deposited as cash.

Real time quotes are available for US and CAD equities. Real time Level II information is also available on CAD equities (not sure about US equities). This is helpful when you are placing an order to see what the spread is like and if any iceberg orders exist.

Access to over 3200 mutual funds. E*Trade charges nothing for mutual fund trades as long as you hold the fund for at least 90 days. Otherwise, they charge a fee of $38.88 or 1%, whichever is greater. I have not bought any mutual funds through E*Trade. ETFs are also available.

You can set up E*Trade as a biller in order to fund your account. This takes 3-5 days for the money to show up in your E*Trade account. A better option is sign up for the automatic debit system where you can transfer cash back and forth between bank and brokerage in a day. Sometimes in can be done the same day if the timing is right. The good thing is that as soon as you initiate a transfer from your bank account to E*Trade, you can use the money immediately to buy stocks, even if the actual money has not been transferred yet .

E*Trade offers a key fob security device which increases the security of your password by creating a new password every 60 seconds. You enter your regular login and password and then add on the 6 digit security code from the key fob which changes automatically every minute. The key fob is free if you have more than $50K in account assets or $30 if you have less. I received mine a week ago.

Broker assisted trades over the phone will cost you extra, $35, I believe. Their telephone operators do not appear to be of the highest caliber, but are generally helpful. I have to exercise some warrants before the end of the month, so we’ll see if they can handle that.

E*Trade Canada is good if you qualify for Power E*Trade, which is the cheaper price level once 30 trades/quarter is achieved (or $50K in account assets). Otherwise, there are better deals available. It is best for frequent traders who have a good grasp on what they are doing. If you are interested in stock trading, check out some of the free stock trading tools that I use .

Thanks again for the review Nobleea. If you guys want to see how E*Trade stacks up against other discount brokerages, check out my Canadian Discount Brokerage Comparison article.

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Sobre o autor: FT é o fundador e editor da Million Dollar Journey (est. 2006). Através de várias estratégias financeiras descritas neste site, ele cresceu seu patrimônio líquido de US $ 200.000 em 2006 para US $ 1.000.000 até 2014. Você pode ler mais sobre ele aqui.

Os principais bônus de cartão de crédito este mês:

I had a account a while back with E-Trade Canada, poor service, runarounds and a rude customer service agent made me decide to close my account and deal with a full service broker.

I am very comfortable dealing online for all my other needs.

Obrigado pela visão geral.

I was thinking about switching away from my current online broker. E-Trade Canada doesn’t seem that much better that’s it’s worth the switch.

Etrade is setup definitely for the active trader, they have a hidden fee on their trade commissions if you dont trade enough, kinda lame. BUT, they do have offer some great tools from what I hear and if you are an active trader well than more power to ya!

Well, I just excercised the warrants I had. It was rather easy, only took 3 minutes over the phone. I guess we’ll see whether they did it right next week!

What I want to know is if the Canadian Etrade account can be funded with US bank ACH.

No, canadians cant do that with their etrade due to USA stupid laws.

Etrade Canada is awful, they will charge you $50 to close an account and $10 just to send you a cheque. Plus if you don’t trade for 3 months, they charge a $25 low activity fee. Cuidado.

Doug, they will only charge you the inactivity fee if you have less than $5k balance in your account.

I had been an Etrade customer since 2003 when I bought a small stock, not worth very much (ended up being less than $25 value over the last few years), and recently bought a stock worth a few thousand a few months ago. I was shocked to see a my cash account balance -$25, for a quarterly fee! Apparently you need to have over $5000 in assets with them before they waive this fee.

I had asked why they never charged me this over the last 5 years, and their response was “I really don’t know, consider yourself lucky!”. I switched my account and future business over to TD Waterhouse, which has no fees as long as you sign up for e-statements. (of course trading fees apply, but no inactivity fees).

The only reason they never charged me, was because they knew if they had, and my account was not worth anything, I would simply not do future business with them. Shady bastards.

No, canadians cant do that with their etrade due to USA stupid laws.

Uneducated staff, imposible to escalate issues.

Hidden fees – what you save in trading commission you will pay in FX and low interest rates.

New owners (Scotia) don’t care either.

E*Trade is very speedy. If you make a max $5K internet payment from a Canadian bank before 1PM, the money “arrives” in your E*Trade account the next business day, regardless of whether you’ve set it up for quick EFT, or not. The down side is, you can trade with the money right away, but you can’t withdraw it back to your bank account until the 10 business day holding period passes. So far, I’m impressed.

Im seeing way to many people complaining about Forex fees for trading US equities. The people who are complaining say they are active traders yet they seem extremely unintelligable. Learn to read before opening an account. I dont see any hidden fees at any brokerage. Yes they are in fine print but its your fault for not reading the fine print. Back to forex fees for us equities. If you trade Us equities just change your account into USD this way you dont get hit with a fee everytime you trade. Before you bash a company and sway people away from them with your comments make sure it wasnt your own stupidity that caused you the problem.

I myself am looking for a new brokerage and im having a tough time. I have over 25k but less than 100k and im looking at Etrade, IB, Tradefreedom, Questrade. Etrade seems the safest in security terms, IB I hate their platform completely, Tradefreedom seems reasonable but they seem amateur for some reason, Questrade cheap commisions but heard way to many problems with them regarding people’s money in account etc etc . I am currently with TDW and was an active trader but i havent traded in about a year. I will be an active trader again but until i do 150 trades a quarter ill be paying $30 fees which is unacceptable. I would love to stay with them but they are unwilling to help me and i will be closing both of my accounts with them all because of this. TO me thats stupid business but hey i dont own a bank.

Would definetely recommend against E*Trade. There are a lot of hidden fees – low activity, issues cheque, etc., etc. The worst part is that all these fees are not clearly documented so you don;t find out about them until after you have opened an account. I switched to Interactive Brokers and found it much more straigth forward.

I been using e*trade now i*trade canada for a few years. There is a fee charge list and if you plan to invest in US equities its best to have USD account.

I never had a problem with their service provider. Although I have more than 5k invested and did not use them as financial advisors. (called them up one time to correct a mistake in using cdn instead of from my usd account. It was fixed fast. Their system is accurate and pretty secure.)

I found lots of comments are ridiculous. You state one thing yet fail to provide the other thing you had find better and what exactly was wrong with it.

I checked the fee charge list on others if you can find it that is and found itrade to be competitive.

For the past couple of months, or so I have been unable to purchase $2-$5 TSX-listed stocks on margin. Would anyone confirm whether $2 stocks are still marginable with iTrade, or is this just fiction and that iTrade forgot to update their margin rules under Help section when they merged with Scotia Investing?

Probably the worst customer service of any of the brokerages I have been with. They lose forms like it is their hobby. They lost my quick transfer application, my father’s account application, my father’s RRSP transfer form, and my roommate’s account application form. You know things are bad when you have to call and get an employee to check if the address written on the website is in face the correct one. I have been with them for about 3 years now and am in the process of closing my account and moving to CIBC Investors Edge.

Service has gone WAY downhill since Scotia took over. “Realtime” quotes are actually previous business day end-of-day quotes for anything that trades on NYSE-ARCA. Telephone customer support has gone from E*Trade-Canada-bad to functionally non-existent. Online company updates happen in geologic time, for example, Crescent Point announced conversion from income trust to corporation March 4 2009, executed change July 2 (CPG. UN is now CPG). iTrade is STILL (as of Jul 13) quoting as CPG. UN close of biz July 2 and is un-tradeable in my account.

My suspicion is that when Scotia took over, they did not acquire source code for online programming from E*Trade. Consequently they are now unable to make program upgrades or modifications.

My advice based on personal experience… STEER CLEAR OF iTRADE!!

I have very bad experience with questrade so I am thinking to open an account with etrade canada. Is this a good company to trade stock? I will follow up to see your comments. Obrigado a todos.

I recently opened scotiaitrade account. The account was opened quickly, however they forgot to transfer the account from my previous broker. When I phoned to inquire about it, first it seemed to them that I didnt send the transfer form to them, but after being placed on hold, they were able to find it in their office. Took another week to transfer over…..the the comission fee. I had over 50 in the account, however, I was given the 19.99 comission fee. Phoned once, they told me this would be corrected for the next day. Two days later, nothing changed so I phoned again and they changed it few hours later…….

As for the easy transfer between bank account, if you want to transfer mony out it aint that easy, takes up to 10 days for the whole process to take place……As for the 100 free trades..they cover only up to 9.99……..lots of fine print and misleading info…………yet have to make a trade…..will update my experience in few weeks……

HHH, ya i called them recently for info. They make it sound good but then there is lots of fine print. They said there is no free 100 trades if you have less than $50,000. So I am still thinking if I should sign up.

Holding my money for 1 week! thats too much. Also, I think there is a min. usage fee right?

I have been told that TOS is very good.

lost 1000.00 bucks today because of itrade.

I called and yelled and they wouldn’t help , got 2 free trades.

I was in TNA for 30k, up 400.00 , went to put in my sell order, and the ticket said my account did not exist. 0.00 money in my account 250k gone.

I called yelling, market tanking ! and they said because we’re are in the process of switching over your account to a margin account……more yelling…get it sold over the phone, wanted to charge me a 45.00 fee, more yelling…no charge sir, sorry…. I want 100 free trades, no sir, I’ll give you 2 , hang up…..

no more itrade, switching again to someone else….

U serious? I have been using them for a month now, and I agree with everyone, their customer service sucks, but here and there u will get a good agent.

Otherwise time will tell if they are really bad, because their platform and everything is fine.

They were pretty bad before and I don’t think I’d chance it with the new outfit since we already moved everything to TD.

I am a Trade Freedom customer using the trading platform the Edge, from the time on when Scotia bought Trade Freedom, the service has significantly deteriorated while in the same time Scotia has increased the fees across the board; the latest new fee they implemented is a $30.00 charge for the platform which used to be free with Trade freedom. At this time I am looking for another broker. Alguma sugestão?

I currently conduct all my banking through Scotia and have an online trading account with Scotia McLeod Direct (SMD), but was thinking of switching to Scotia I-Trade as the fees with SMD are killing me. I’m a fairly low volume trader (

24 trades / yr) playing with mainly CND & US small cap stocks in my TFSA, which gives me a base of $5-10K to work with. I have been reading through the various reviews, but can not decide which online service would best suite my needs (although I am currently leaning towards TDW). Any in-sights and suggestions would be greatly appreciated…!

I’d stay away from ITRADE, if I were you, Dugger. They have mismanaged my accounts, have just magically lost one, have enormous phone wait times for customer service and when you do get a rep, they are surly, do not listen, are ill informed and just plain worthless.

I have had them make many mistakes, so that now I have to calculate every day what should be where, otherwise they can make mistakes to the client’s detriment.

All Scotia products (including their banking) are worst. Very poor customer service. We have to wait loooong for everything. Worst complaint resolving system. Inexperienced staff. Keep off from them.

Absolutely terrible, after 9 months of trying to get the proper mailing address entered onto my account, I have yet to receive a statement since March 2009.

On phone calls they appear condescending and don’t listen to what you are trying to tell them, and when I finally sent in a letter of complaint resulting in a phone cal from a ‘specialist’ her follow up email said “we consider the problem now solved”.That was in June, it is now January 2010 and I am still statement less. I am in the process of transferring to Questrade who also offers on line statements something that seems to be beyond the skill of ITrade; their charges are also much more reasonable.

The lower trading fees is why I switched from RBC direct. Like cell phone plans, we Canadians sure get hosed when it comes to trading. I transferred $50K which qualifies for $9.99 equity trades, whereas $100K is required at RBC.

The transfer was done during the changeover debacle last Dec 09. It was only 2 weeks ago that missed dividends and trading fee rebates were credited. I must have placed a dozen calls to my personal account manager to get it sorted out. Eleven to many in my opinion. That being said, he saw it through which is the only reason I did not transfer back. If it were left to their general customer service, which I believe is utterly lacking, I would have taken my money and ran.

Compared to RBC, iTrade’s general web platform is very weak. I have subscribed to Globe Investor Gold for decision making. In addition, if you are a MAC user like me, you will quickly find their platform cannot fully support your computer. When I inquired about it, I was told institutions use PC’s so I should buy a laptop otherwise I’m SOL.

I’m also alarmed by what I’m reading about their currency exchange. At this point in my investing career I’m mostly building core positions in dividend paying stocks. I have a USD account but I question if utilizing the TSFA at iTrade for foreign equities is a good idea.

In summary I believe you get what you pay for. I definitely don’t have the peace of mind I had at RBC. I am much more diligent in keeping track of dividends owed and general record keeping at iTrade. Although I disagree with RBC’s play dough online poker site practice account marketing strategy, I will probably switch back once my positions grow to the $100k needed.

In addition to the terrible currency exchange and other issues mentioned above, I thought I would share some of my experience:

BNS has really screwed up Etrade. I don’t know if they’re not funding it or what but customer service is in the toilet. The interface is terrible so we are forced to call in anything other than the simplest option orders. The guys answering the phones are either incompetent or pretend to be – very frustrating, when trying to place a simple option spread order. The web site goes down for hours at a time and entire option chains quotes mysteriously disappear permanently (anyone look up RUT lately?). Not to mention that fun weekend in December during which they changed a LONG call position to a SHORT position out of nowhere forcing me to deposit 20K to cover a margin call which should never have been issued in the first place.

Going forward my “core” holdings will be at RBC and I’m going to optionsxpress for option trades, at least you can enter orders directly without being forced to talk to rude, slow and sometimes stupid customer service reps. A sad end to a 10 year old Etrade account, oh well.

UPDATED REVIEW to my original post on Feb 5 2010. Tax season is here and I find myself sorting through stock confirmation receipts for roughly a dozen trades that I skimmed around my core holdings in non registered’s for the last two months of 2009.

One of the first things I asked before I signed up as a new customer was - Does iTrade send a year end summary of security dispositions? The answer was yes. The truth has me reeling.

My mailed statements (which look mickey mouse) do not show adjusted book values in my non-registered accounts. I can understand this be the case for securities transferred in-kind from my old (soon to be new again) institution but I have since bought two new ones and guess what-no book value. At least not on my paper statements. Online they are stated except for the one security where the number on my screen does not match the number on my confirmation receipt. Is iTrade for real. Also, still waiting for a income summary for a trust company I own and were already half way through March.

In my first review I stated I would wait until my portfolio grows to the needed value to qualify for $9.99 trades at my old institution-RBC. Needless to say the transfer paperwork is currently in progress. iTrade is simply not worth the headache.

I keep thinking about iTrade’s commercial shown everywhere. The one where customers are throwing each other a ball then answering why they trade with iTrade. I see it as something different. The customers are actually employees and the ball is a hot potato representing your money.

I cant believe their year end finale trade summary. Not a summary at all, they make you do the math on every stock traded, and then you have to figure out the years total, WHAT A FRUSTRATION!! Fine if you traded a half dozen times in a year but I’ve got 612 trades to go through now. Last years summary was what I’m used too its similar to TD Canadatrust where everything is calculated for you, You just scan down through the pages to see the amount you made or lost per stock traded, on the finale page of the summary they showed your total net loss or gain. I had a great year and even requested to pay them if the they would kindly run my trades through last years summary program, I begged as politely and kindly as I could but I was spoken too like I was a piece of garbage the most offensive remarks, I ever from a discount broker so I’m leaving with my half mill and its back to TD… I did find out however that last years summary was Etrade program. Not impressed!!

Sorry to hear the year end summaries are useless this year. I put all my trades into a spreadsheet anyways as no broker seems to so average cost correctly but still… how hard is a y/e summary with calculations.

My main beef with iTrade is customer service. They are so lazy and useless and misinformed. Their main purpose is to not answer and pass the buck. This time I emailed to say I was sending in cash to meet a margin call. I was away for the day so they just email back saying they didn’t have my account number so can’t help. ie they had my name and last 4 digits, and the specific margin email, but were unable to look up my account! What a joke they are. So instead they sell the wrong security to meet the call, they sell a marginable one so they have to sell twice as much!

Only once was I able to escalate, the poor useless manager just had nothing to say. Be warned, iTrade is useless on service. Each year I say I will transfer out, this year I will try one account at TD and one at Questtrade and see how it goes.

Also, the iTrade platform has bugs in it I complained about in 2006! They do no upgrades, just a few minor ones when Scotia took over and cut service quality even more. Some of the site works fine, I have not had problems placing trades, other than they dont open the system until after 8am EST! ie if you place a change order it will tie up your margin as if it is a buy, so you cant place your 2nd change order! Amazing but true.

Meu conselho & # 8211; Ficar longe! Not worth the headache. I will finally move and hope for better,

THE WORST CUSTOMER SERVICE EVER.

I just closed my account with them and moved somewhere else.

Things you should know if you make a U. S, trade make sure you move your money from canadian optimizer account over to U. S margin account other wise these thief’s they charge you 5 cents for conversation fees per dollar for each trade on the buy and sell and even if you have a US margin account they still convert it to canadian to make extra from you which i don’t think anybody else does.

Another words if you are an active trader this is not a site to use since if you make like 20 trades it could cost you a few hundreds of dollars in conversation costs aside from trading costs. when it was E*trade the service was much better and rubbery did not take place in bright day light.

Uh i forgot to mention, it really is about options not so much trading the stocks it self. Since i do have an account with two other brokers i noticed that.

never ever it is a good idea to sell or buy at market price with scotia trade since i did test them and bought and sold the same amount of option on i trade an another platform at the same time on two different screens and pressed entered with less a a second difference and to my amazement the market price on both buy and sell using i trade was more on the buy side and less on the sell side.

So be very careful with these guy they cheat like there is no tomorrow.

Firstly what weak chart structure, no 200 dma or any other Moving average, no basic volume indicator other than the ancient bar graph. This is like playing soccer against Pele do you think you could beat him?

You might mention flight desk which is so totally un-user friendly it blows my mind, Scotia would even offer such a hard to navigate tool. Especially at $60/ month and baby boomers as their main clients. They want money and every penny they can get.

Just so many basic flaws. I could pick out in a day cretiquing, such as me qualifying for $9.99 trades, but initially charging me 24.95 plus an additional after-hours placement charge. I phoned they said, “it gets updated next quarter or some bs.” I missed all the tax loss selling bottom buying, because I’m not into getting screwed and don’t do well appealing my case. That’s about $4k gone. How hard would it be to incorporate this into their crap platform.

Usd conversions are obviously a huge money maker, they can charge what ever they want. I made $2 a share on a Gold stock and was still down at the time.

I don’t know how much training their employees get but it’s not enough, they are fairly clueless. The trader I talked didn’t know the most basic stuff.

My password I use 10+ times a day, went invalid one day.

The security questions are a joke where do you live, what’s your phone number give me a break, a scam could have a field day. Maybe check the phone I am calling from, is the same one on file, I asked, Scotia can’t see my number nor do they care.

Anyways beyond their joke of a platform, that they reassure me is changing for the better soon. Is that I noticed they are nickle and diming me to death. Check your account very closely for bank fraud. Not that they will ever be charged, the untouchables beyond the law, banks.

Would it be too much to ask to see where you are, plus minus for year/month, this is the computer age 2012, Scotia get out of the stone ages. Financial reports from years ago, not even candlesticks, or moving averages. I have to download every bit of company news, just link me.

I thought Scotia McCloud was bad, I couldn’t believe how prehistoric it was. I assumed this would be better nope it’s worse way worse. People including me have their life savings here, and this the best they can do. Even Yahoo financial is better, it has the basic tools needed to make prudent investing decisions.

Scotia_iTRADE charged me $9.99 commission to buy 18,000 shares of a stock and then when I sold the same 18,000 shares a few months later they charged me $540 in commission.

Apparently I only had a few months at a “special” taxa. Missed the fine print that said they would increase my fees by 54 times.

I sent two emails to ‘mail. president@scotiabank’. They ignored both.

I moved everything to TD WebBroker. Their commissions are fair and far more transparent.

Naked Options versus Covered Options: Where Should We Take a Stand?

Covered call writing and selling cash-secured puts are more conservative strategies than trading naked options (selling calls and puts without having the resources to execute the potential trade obligations, if exercised). A naked call occurs when a speculator writes (sells) a call option on a security without ownership of that security. It is one of the riskiest strategies because it carries unlimited risk as opposed to a naked put, where the maximum loss occurs if the stock falls to zero.

An at-the-money $30.00 call option is sold without first owning the underlying security. Our obligation is to provide shares at $30.00-per-share if the contract is exercised. If share price rises to $50.00-per-share by expiration we are obligated to buy the shares at market ($50.00) and sell at the strike price ($30.00). Since the upside is unlimited, so is our risk.

An at-the-money $30.00 put is sold without first shorting the underlying security (borrowing shares from our broker and selling them at current market price). We are obligated to buy shares at the strike price. Share price can theoretically move to zero defining our risk at the strike price minus the put premium. If the stock was initially shorted, the option risk is lower and defined but there is unlimited risk in the shorted position should the stock price accelerate. Shorting is not a strategy for most retail investors and that’s why we stress cash-secured put-selling and keeping our arsenal of exit strategies on alert.

Conservative approach: Covering our positions.

Covered call writing obligates the call writer to sell shares at the strike price, if the call buyer decides to exercise the contract (s). Since the underlying shares are owned before the option sale, the cost basis is known and potential loss due to exercise is measured and known. For example, if we bought shares for $28.00 and sold $30.00 calls and later share price moved up to $40.00, we would be able to relinquish those shares at a profit. If we didn’t first own the stock, we would be required to purchase at the market price of $40.00 and then sell for a significant loss at $30.00.

Selling cash-secured puts obligates us to buy shares at the strike price if the option holder decides to exercise. If share price is $32.00 and we sell the $30.00 put for $1.00 and then stock price declines to $15.00, we would be required to buy shares at 30.00 per share for an unrealized loss of $14.00 per share [($30.00 – $1.00) – $15.00]. Of course, our position management trade executions (like the 3% guideline) will mitigate losses in situations like this.

Risk-Reward profiles of long calls and puts.

Risk-reward profiles for Long calls and puts.

I never liked these graphs because they are deceiving to newbies. It appears that upside is unlimited and downside limited. However, the downside is limited to 100% of our investments. A better way to state the conclusion, is that there is less capital risk with options but we must also understand that our entire investment can be lost.

Risk-reward profiles for short calls and puts.

Risk-Reward Profiles for Short calls and Puts.

Once again, the graphs are deceiving to the beginner. It appears to show limited upside with unlimited downside. The charts do not take into consideration position management opportunities that should be executed when trades turn against us. Also, with covered call writing, we own shares at a known cost basis to mitigate to the upside and in the case of cash-secured puts, we have the resources to execute our trade obligations should share price move below the strike in addition to exit strategies where option positions are closed when trades turn against us.

Why covered call writing increases our chances of winning trades.

Nobody, I mean nobody, can reliably predict the price movement of a stock in the short run. There are way too many factors that influence price movement and no matter how sophisticated an algorithm is, it cannot be relied upon 100% of the time. This includes the guys who scream the loudest on TV and radio. Many offer very valuable information but nobody knows for sure. That said, we can certainly throw the odds in our favor by mastering the 3 required skills for option trading…stock selection, option selection and position management.

Looking at worst case scenario and assuming that the odds of a share price moving up in the short-term is 50/50, we can make a case that covered call writing, by definition, increases our opportunities for a winning trade. The reason has to do with the option sale. In essence, this aspect of the trade lowers our cost basis and so we can realize a capital gain even if share price declines by less than the option premium. The tradeoff is that upside is limited by the strike price. So let me go back to my baseball analogy which I have used frequently over the years: covered call writing is a strategy where we will never hit grand slam homeruns. But we will hit singles and doubles all day long .

Global stocks showed moderate increases this week along with lower volatility and stable interest rates. Volatility, as measured by the Chicago Board Options Exchange Volatility Index (VIX), dropped to 11.28 from 14.75 a week ago. The price of a barrel of light sweet crude oil was little changed, at $47.55 versus $47.20 a week ago, despite potential supply disruptions from Hurricane Harvey. This week’s economic and international news of importance:

According to media reports, senior Trump administration officials and congressional leadership have agreed on an outline for significant reform of the US tax code. The framework includes lowering individual and corporate income tax rates while phasing out popular deductions The US Department of the Treasury levied new economic sanctions on several Chinese firms and a Russian firm, as well as Chinese and Russian individuals, for helping supply materials to North Korea’s nuclear and ballistic missile programs The synchronized global economic recovery that began about a year ago continues with global purchasing manager’s indices showing that growth is holding firm in most major economies Europe showed a strong rise in manufacturing-sector output while in the US the service sector showed strength US Federal Reserve chair Janet Yellen spoke on financial stability matters, but did not touch on monetary policy, appearing to favor a more dovish policy on future interest rate hikes Gulf Coast refineries are preparing for the potential devastating impact of Hurricane Harvey. Oil and gasoline markets are little changed ahead of the storm’s landfall. According to the Wall Street Journal, the US government is considering a ban on the trading of some Venezuelan debt by US-regulated financial institutions With 475 of the 500 members of the S&P 500 Index having reported, second quarter earnings are expected to increase 12% compared with the year-ago quarter. Stripping out the energy sector, earnings growth is seen at 9.4% Revenues overall are expected to increase 5.1%, 4.2% excluding energy.

Mon, August 28th.

Eurozone sentiment index US Gross Domestic Product.

Japan industrial production China purchasing manager’s indices Eurozone unemployment, consumer price index.

US: Employment report Global manufacturing, purchasing manager’s index.

For the week, the S&P 500 moved up by 0.72% for a year-to-date return of 9.12%

IBD : Market in confirmed uptrend.

GMI: 2/6- Sell signal since market close of August 11, 2017.

BCI : I am currently favoring in-the-money strikes 2-to-1. Next challenge for the stock market is Hurricane Harvey.

WHAT THE BROAD MARKET INDICATORS (S&P 500 AND VIX) ARE TELLING US.

The 6-month charts point to a neutral outlook. In the past six months, the S&P 500 was up 3% while the VIX (14.28) moved down by 7%.

Much success to all,

Alan and the BCI team.

About Alan Ellman.

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45 Responses to “Naked Options versus Covered Options: Where Should We Take a Stand?”

that’s why I love the BCI methodology.

We all believe that our selected stock will go up. Otherwise, we would not consider buying it.

By selling a covered call we can reduce our cost a lot.

For me 2% for one month is a lot.

We limit our upside.

But huge increases in one month are rare, and very unpredictable, especially for us, retail guys.

A recent example will ilustrate :

Buy VEEV on 07/17 @ 63.81 (bold on Barry’s 07/14 list).

Sell VEEV 08/18/2017 60.00 C for 5.76, ROO = 3.4% (volatility).

Cash invested: 5,805.00 per contract.

VEEV at expiry : 62.38. Call exercised. Gain = 3.3% after deducting comission (excelent)

On 08/22 VEEV closed @ 65.82, so no upside relinquished, even if timed to perfection.

Today VEEV is @ 55.81, despite beat on 08/24 ER.

Risk reduced a lot by avoiding ernings report.

This week’s Weekly Stock Screen And Watch List has been uploaded to The Blue Collar Investor premium member site and is available for download in the “Reports” seção. Look for the report dated 08/25/17.

Also, be sure to check out the latest BCI Training Videos and “Ask Alan” segments. You can view them at The Blue Collar YouTube Channel. For your convenience, the link to the BCI YouTube Channel is:

We have also uploaded the September edition of the “Blue.

Chip (DOW 30) Report”. You can find it in the “Resources/Downloads” section of the Premium Member site.

Barry and The Blue Collar Investor Team.

Options are really great. There seems to always be a defined risk version of the undefined risk trade. Rather than short a naked call, long a put is the same risk profile. The downside is that it’s a debit trade with a potential 100% loss in a specified amount of time. Most retail traders are better off not being long an option, however. The long side requires the trader to be right on timing, potentially direction, and potentially volatility metrics, etc. all while facing slippage and other transactional and liquidity risks all while holding an asset which has value which is realistically depreciating on a continual basis.

Would you say the same thing to retail guys like me who choose to be long call/put spreads instead of just buying the call or put ?

Though I thank you enormously for being part of our community I am not in the same league with you and Spin on options knowledge. But I am working on it :)!

It seems if someone knows enough about options to make a directional bet then spreading it and buying ITM at least a month out makes sense.

It’s funny but I don’t consider portfolio over writing or even month to month stock buy/writing to be “trading” even though it obviously is :). It seems like straight forward investing since you are looking for a linear long result.

Once you take short positions, sell condors, use straddles or strangles or buy/sell spreads that feels like “trading”! The difference is semantic but meaningful to me as I try to stay cognizant of what I am doing as an “investor” and what I am doing as a “trader”. They can be different.

Anyway, as always, a successful week to all! & # 8211; Jay.

You two and Spin have obviously tried a lot of different things – have you ever heard of a strategy of ‘collecting’ one share in a large number of different stocks (so as to get on the company register) to profit from capital raising offers? (You get the one share by buying and selling the shares, and selling all but one share.)

Jay might be a better source of info for your question but I’ll take a stab at it. I used to do a lot of IPOs, particularly in the late 90’s when most internet IPO’s were no brainer winners. I also did some secondaries, which I assume is what you’re getting at.

In those days, although there were more shares available with secondaries (lower demand than IPOs), it was still on a broker allocation basis. My guess is that it’s different today in the internet era. It would seem to me that selling OTM puts or verticals would achieve a better purchase price and involve less hassle, fewer commissions and avoid the need to track of a large number of different positions.

I have not heard of your collection strategy. I most often use the sale of OTM cash secured puts as the method to obtain blocks of stock, obviously in 100 share increments.

I appreciate your comments and always helpful insights below. I have to say that on aggregate I have done better as a net seller of options than as a buyer. But Buying them is just so damn much fun when you catch a winner :)! Yet in the end this is real money and there is no substitute for doing your homework and understanding probabilities. & # 8211; Jay.

Don’t you guys ever get capital raising offers from companies in the US? I’ve only ever done this on the Aussie market (no plans to try it in the US – I prefer cc’s.) A recent example: I own one share in Bega, worth the princely sum of $6.50. Bega was raising capital and offered me up to $15,000 worth of shares at $5.25 (it was currently trading at $6.50, so almost a 20% discount.) I naturally sent them the $15k and a week later received the shares and sold them for a quick profit of over $3500. Since I have at least one share in over 1400 different companies I get a lot of such offers…

such an interesting story .

1400 shares. If the avarage value of each share is $6.50, that would be $9,100.00 tied down, which maybe could generate more cash with CC writing, and would be much more fun ?

Interesting sure winner of $3500 by just owning one share.

Explains…why I did not play the PowerBall 700 Million last Wednesday. Did not believe I was a sure winner.

Wouldn’t bother with cc’s on the Aussie market Roni – big spreads, poor volume, high fees, and only available on the biggest stocks anyway. Strange though that we should get lots more capital raising offers than US stock holders – ‘Share Purchase Plans’ and ‘Rights Offers’ they’re called.

Covered calls are no more conservative or risky than short puts. The same holds true for covered puts and short calls. In both cases, there’s an imbalanced R/R ratio. The abuse comes from naked leverage.

Vertical spreads are equivalent to collars. They reduce the adverse affects of time decay as well as mitgating that imbalance, shifting it closer towards 50/50 depending on the strikes selected.

Note that bull put spreads are equivalent to bull call spreads (same terms). The same holds true for bear spreads so it’s worth considering selling the spread because if all goes directionally as planned, the options expire and frictional costs are reduced.

A nice feature of a bull put vertical is that if it drops and you are willing to own the stock, you can roll the long leg down, lowering the cost basis (you can do the same with the collar). I have an XOM position that’s going to be put to me. By rolling down, my cost basis is currently about $1.50 less than had I just sold the short put – by no means a winner but far better than had I just sold the short put.

I am an XOM retiree with a pile of ESOP shares that have been dead money for a while except the dividend that did not offset the decline. It has, however, been a good one to sell overhead call spreads or buy put spreads against. - Jay.

Yah, I may be trying to catch a falling knife with XOM :->)

This may sound a bit contradictory but because the exchanges reduce share price by the amount of the dividend on the ex-div date, the dividend will never offset the decline because it is the reason for the decline (the aggregate value of dividends received). Any loss above and beyond that is due to actual price decline (more selling than buying). It requires share price appreciation to recover the dividend reduction and turn the dividend into Total Return. IOW, in and of itself, the dividend is a return of your investment capital.

*Rather than short a naked call, long a put is the same risk profile.”

Não é verdade. Check a risk graph.

“The downside is that it’s a debit trade with a potential 100% loss in a specified amount of time. Most retail traders are better off not being long an option, however. The long side requires the trader to be right on timing, potentially direction, and potentially volatility metrics, etc. all while facing slippage and other transactional and liquidity risks all while holding an asset which has value which is realistically depreciating on a continual basis.”

Timing, direction and volatility affects the seller as well. High delta call LEAPS have merit for long ownership since they offer lower risk.

There’s no inherent edge of selling options over buying options. If there was, traders would arb the difference. Option buyers have limited risk with large potential reward (some extreme Div Aristocrat examples this year are TGT, CAH, GWW). Option sellers have limited reward with large potential risk. It’s the application that makes the difference.

Thank you, Alan, – Great Article on Naked Versus Covered Trading.

Your Exit Strategies for Covered Calls and Cash Secured Puts increase the odds to increase the reward from our initial investment by not letting the trade sit idle and just waiting it out while price swings either up or down before Expiration Friday.

Yet nothing is guaranteed and one must stay alert. Keeps those memory cells busy.

Is anyone else having problem with the Blog comments being forwarded to your email?

With the new line in the side menu:

“Subscribe Here – Have the latest blog articles sent to your inbox”.

It does not seem to work for me.

I have asked my tech team to look into this matter. I am currently out-of-town on baby-sitting detail for my 2-yo and 5-yo grandsons. Today I’m thinking of teaching them how to read a technical chart…either that or Lego-Land…we’ll see.

In the interim, try re-starting your computer as this matter may have recently been addressed. I’ll follow-up as needed.

Please split the difference and teach them how to make a bar chart with Lego :)! All the best…..- Jay.

I remember, when I was that age, my preffered amusement was digging a hole in the sand with a small tin can.

But that was long, long ago……..

The picture speaks for itself…final decisions made by Seneca and Jordan.

CLICK ON IMAGE TO ENLARGE & USE THE BACK ARROW TO RETURN TO BLOG.

I am a new subscriber and want to ask you about the BCI Weekly Summary from the Premium Report.

What does “I am currently favoring in-the-money strikes 2-to-1” means? How does it relates to the other summaries (IBD, GMI, etc)?

Thanks you and regards,

This means that, based on my overall market assessment, I am currently selling 2 ITM strikes for every 1 OTM strike. If I sell 21 contracts, 14 would be ITM and 7 OTM.

Welcome to our BCI Premium Member community.

This week’s 8-page report of top-performing ETFs and analysis of ALL Select Sector Components has been uploaded to your premium site. The report also lists Top-performing ETFs with Weekly options.

Next week’s ETF report will be published on Tuesday as we are moving our main office from NY to Florida next week. All articles, reports and shipments will be sent in a timely manner.

For your convenience, here is the link to login to the premium site:

NOT A PREMIUM MEMBER? Check out this link:

Alan and the BCI team.

An ‘interesting’ start to the Sept contract – I waited a few days to really get started due to the scary looking indices last week, then managed to buy into EDU just before it tanked. I also failed to notice that CTLT had changed it’s ER date from August 3 to August 28 (sneaky devils) but was lucky there 🙂 Anyone still looking to put cash to work, the CORT 15’s, MITK 10’s and UCTT 22.50’s look good value. Also watching LITE, SINA and HTHT to put some more cash to work.

Regarding getting the Blog comments in my email… I rebooted my computer, cleared TEMP folder in my PC, Cleared Cache, cookies, and all Browsing Data in Chrome. When I try to subscribe to theBlog comments, I enter my First, Last name, then my email address. Press on Subscribe and I get a blank screen.

I then went to Internet Explorer, Logged in BCI, Performed the same as above, and again I get a blank screen.

So this issue is still unresolved. I cannot guarantee it is not just my computer but funny nobody in the blog has stated that it is or is not working that you get Blog comments in their email once they subscribe..

I did a search in my email for Justin, Jay, Spindr0 and the last blog entry that I received was on Aug. 4, 2017.

My tech team is looking into this matter. Thanks for the heads-up.

** XME Unwind – Dead Profits finally resolved / Comments on ROO% Basis **

Finally sold my current stock only position of 600 shares of XME after the recent rise of the stock price. Stock price was 32.1847 (after fees) or 8.06% down from my purchase price of 35.008. Including the income from the covered call, net loss was -$1362 or ROO% Gain loss of – 6.49%.

See below for analysis of the position. Note the comments in A3 and C3 below where I compare the ROO% used in the Alan’s BCI Methodology with the alternative Gain% using the Net Investment Basis of the position.

A1 ROO% Gain; Sold OTM Covered Call at 35.008 Purchase Price, Strike 36, STO at 0.6762 (52Wk High 35.21), Gain 0.6762, ROO Gain% 1.932% (0.6762 / 35.008).ROO Cost Basis 35.008,

A2 Alternative Net Investment Basis: Initial Investment including Call Income (Equal to BreakEven point) is 34.3318 (35.008 Purchase Price – 0.6762 Premium). Gain using Initial Investment Basis: 1.970% (0.6762 / 34.3318).

A3: Comments on two gains calculated:

**Notice the numerical difference in the percent gains calculated in A1 (ROO%) and A2 (Net Investment) is less than 0.04% or on a percentage basis less than .02% .

** Many articles on Option consider, when calculating returns, a position’s net investment basis for a covered call to be the Stock price less the premium from the option (ITM or OTM). As long as the Time Value or Numerator portion in the Gain equation is within a certain range for the Stock Price (OTM case) or Strike Price (ITM case), the difference is not significant. (See C3 below for additional comment on this.) I have found the difference not to be significant for the typical gain values being used in Monthly Covered call trading.

B1 BTC 20% Rule implemented, Close Option Leg.

** Premium down for 20% Rule, Underlying was at 32.65 or 6.73% down from Purchase Price of 35.008.

** New BreakEven after BTC 34.4554 (34.3318+0.1236).

** Gain at this point is +32.65 – 34.4554. = -1.8054. ROO% Gain at this point is -5.15% (-1.8054 / 35.008).

B2: Alternative way of calculating gain and ROO% with Cost Basis 35.008:

** Stock Gain: 32.65 (Sell) – 35.008 (buy) = Gain -2.358.

** Option: 0.6762 (Sell) – .1236 (Buy) = Gain +0.5526.

** Total Gain: -2.358 + 0.5526 = -1.8054.

** ROO% Gain -5.15% (-1.8054 / 35.008).

8/29: Unwind position Sold 600 shares at 32.1938 (Before fees)

C1. Sold Stock at 32.1847 (After Comm/Fees) or -8.06% down from Purchase Price of 35.008.

** Net gain: 32.1847 – 34.4554 (BreakEven) = -2.2707. (600 Shares loss is $1362.42 (600 x 2.2707)

** ROO% gain = 6.49% (-2.2707 / 35.008).

C2: Alternative way of calculating unwind Gain and ROO% with Cost Basis 35.008:

** Stock Gain: 32.1847 (Sell) – 35.008 (buy) = Gain -2.8233.

** Option: 0.6762 (Sell) – .1236 (Buy) = Gain +0.5526.

** Total Gain: -2.8233 + 0.5526 = -2.2707.

** ROO% Gain -6.49% (-2.2707 / 35.008)

C3: Gain of position using Net Investment basis.

** From A2 above, the Net Investment basis is 34.3318.

** Gain using this basis is -6.61% (-2.2707/34.3318).

** Notice the numerical difference between the ROO% gain and the Net Investment percent gain is 0.12%. or on a percentage basis less than 2%.

Additional comment on the Dead Profits issue:

Question: Was it worth holding onto XME for 5 months to unwind it at a favorable price or would it have been better to unwind it immediately at a larger loss earlier in time?

I generally have been successful in holding on to losing stock position for a short while and unwind them a good price peak or at a value near my breakeven point. But that did not happen with XME. It kept declining. my hopes was since it was an ETF it could reverse its course within a reasonable time.

Unwinding in March:

My net investment in XME was 20,599.20 on 2/13/17 including the income received from the sold call. I could have sold the position around 3/17 and released $19,500 (loss of $1099.20) for new covered call positions.

Assuming I could average 1.5% per month that meant lost income of around $292.50 per month or in 5 months $1597.03 compounded monthly. Net gain in the position would have been $497.20 after 5 months, if I am successful each month in attaining 1.5% gain.

Unwinding in August:

My actual loss (C1 above) after the 5 months was $1362.42. In the 5 months the loss in the position once reached to around a value of $-3855.00.

The difference in lost funds between the two choices after 5 months is $1859.62 (+497.20 -(-1362.42)) but could have been worse if the stock had not recovered. Since I had only on stock position with this problem in my portfolio I am satisfied with the results. I was lucky in the fact the stock recovered or otherwise I would have accumulated significant losses over many more months.

To our Texas and Louisiana subscribers,

Our thoughts and prayers are with you. We hope that you and your loved ones are safe and will get through this crisis quickly.

Alan, Barry, and The Blue Collar Investor Team.

Trading Experiences from Expiration Friday 8/18.

Last Expiration Friday 8/18:

Covered Calls – Rolls:

I rolled out EDU , Rolled Out and up PYPL.

CSPuts – Expired Worthless – a positive:

QQQ, KWEB, HLT (all have new Option leg positions.

For the Rolls, I purposely watched the Time Value of the options and executed them at 4:30pm (PYPL – 1 positioin) and 4:45pm (EDU – 4 positions in parallel at Optionhouse/Etrade and Fidelity ) for an additional $500 income due to Time Decay.

After Expiration Friday:

Dead profits finallly converted to Cash:

XBI ($2j00 loss), XME (Purchased 2/13/17 $1300 loss, recovered price somewhat)

New covered call positions:

Long Positions – Buy-Wait Strategy:

ALGN (Trying out Jay’s Buy-Wait Strategy – Purchased 8/18/17 when market dropped several hundred and this stock at the same time Gapped Down as a buying opportunity). Purchased at 170.09, now at 174.88 (2.84% Gain).

Ready to add today 8/31/17 OTM Option Leg for additional income of 2.1% (Total 4.99%) and a great 2.7% downside protection.

Portfolio Performance to date:

July 21 Expiration Friday to Aug. 18 Expiration Friday: Gain: 0.5% (not a great month, but previous cycle was 3.1%).

YTD on my Portfolio is 14.5%, 21.8% annualized.

Per Alan’s muliple suggestions, I finally made time to review FINVIZ web site. Hope to write Blog comment on how I use FinViz with the Premium Report to help me more efficiently and quickly select Candidates for trading and other insights of the site.

Great stuff, thanks for sharing, congrats on fine YTD results!

Glad your ALGN has recovered from your buy point. You used “Buy-Wait” perfectly: you bought a broad market dip not related to ALGN. It was just a boat in the tide and you let it come back up.

Now you could even write ITM and still have an underlying gain in addition to your premium! It;s just a tactic that works best on stocks you are bullish about, buy on dips and have a little patience to wait them out before you cover them. It doesn’t work all the time but what does :)?

I have been impressed by the resilience of this market. When the Yo-Yo in N. Korea tested his latest missile early this week I thought we were in for a terrible day. It looked that way at the start then we were green at the end and since. There is still a high “Wall of Worry” to be climbed in September: Yo-Yo Boy isn’t going anywhere, debt ceiling and government shutdown are looming, Harvey recovery funding and the usual crummy September seasonality. We may need the cushion of the things that are working now.

Figuring it would be a good month to portfolio over write I pushed my expiry out to Sept 29th to coincide with the US govt funding deadline since if there is market damage to be done it will happen by then. & # 8211; Jay.

ALGN up 1.06% today. Hope you have not covered it yet :). But that time is coming soon. Cover at the next overhead resistance level if it holds. Atenciosamente, & # 8211; Jay.

Thanks for the heads up but ALGN covered at Strike 175 with the stock around 174.88 for premium 3.64. With my Cost Basis at 170 that’s an addition 2.2%. With the upside potential to 175 that’s 5.1% Return if Exercised. If I had not sold the call it would have gone done with my luck.

If I roll at Expiration i will do even better.

I like it when on a rising stock I can catch it ATM for maximum Time Value. Or I can catch a gap down stock near its Strike ATM value as well and it is a buying opportunity.

I see EDU has recovered its downturn. Does that often.

Currently I am a little concerned about the NKorea / China situation. Sanctions against China for various reasons could affect investments if it gets to that point. Should we continue to invest there? China does not seem to take it seriously enough in trying to limit NKorea’s program’s to the point where it will reach a critical flash point, whether intentional or accidental.

Good to see EDU moving back up! 🙂 The CTRL 25’s are looking good btw, just added a few myself.

Re the BCI email it never worked for me – I don’t mind, I get too much email anyhoo.

Money Expo: An Online Webinar Event:

Monday October 9, 2017.

Online event hosted by The Money Show.

Alan will be a featured speaker at MoneyExpo, which is the biggest online-only premier event for traders and investors across all traditional asset classes.

Registration link and information to follow.

I sse EDU declared a special dividend today:

EDU Special Dividend: EDU will begin trading ex-dividend today with a $0.45 special dividend payable to shareholders of record as of 09/06/17.

Dividend also has the same dividend information and prior history of similar dividend announcements..

Option Names were adjusted: For the Calls at 80 Strike, the new adjusted name is 79.57. Optionshouse and Fidelity renamed the options in their system.

Here is an article Alan wrote for a similar event in 2013:

A similar special dividend was also declared on 9/1/2015.

The Classic Encyclopedia covers Non-Standard Options on page 193. Does this special dividend make it a Non-Standard option?

Not sure what the consequences are from this with regards to my purchase price and future actions like Rolling at Expiration.

Any special actions for us later?.

Thanks for that, was news to me. Great day for EDU anyway. I see the payout date is Oct 6 – being a foreign investor I believe there’s an automatic 25% tax (can anyone confirm?)

The broker will credit your account 75% of the dividend, and pay the tax of 25% automatically.

All non residents are treated the same by the US authorities.

The dividend is a return of investment capital. Because it is special (unexpected), the strikes are adjusted. It has no effect on you other than it lowers your cost basis and strike as well as getting a new option symbol.

For example, if you bought XYZ for $98 and sold a $100 call (2 pts OTM) and there was a $1 special dividend, your cost basis would be reduced to $97 and the strike to $99 (2 pts OTM). In both cases, you stand to make the premium plus the $2. This is different from a standard dividend where the fly in the ointment is if you are assigned prior to ex-div and you don’t receive the dividend. This presents two scenarios which can result in two different returns based on what the stock does post ex-div. .

There is a subtle difference in quality of premium available when a special dividend is large and the strike being written is ITM or OTM, favoring taking the position prior to the dividend. But that’s getting a bit deep into the weeds. For ATM strikes, it’s linear and makes no difference.

Spindr, Justin – Thanks for the comments and for information on the impact of the special dividend.

I have 1200 shares in 4 positions, 300, 400, 200, 300. Will comment further in the next blog. They were all OTM last Friday 8/25 with Last Price 77.79 Stiike 80 and Gain of 3% and now they are ITM with a special dividend. Nice set of events.

SpinDr – Will also comment later on my current reading of McMillan’s Book Options as a Strategic Investment and the Study Guide.

The Book came as an Inter-library loan from Nashville Public Library 1029 Pages!, Fifth Edition (2012) – Tremendous book. Clarifies a lot of questions I had.. Will have to check it back in and then checkout again from some other library for me to fully read the book. It is available from Barnes and Noble for $60.00 but that is for a later decision while I can check it out for free.

The Study guide is from the Broward County Library. 4th Edition – Still useful since it covers the basic chapters.

Another thing on my plate… IRMA in the worst scenario may hit South Florida around Sept. 12… That is the I take off to NYCity for a 4 day vacation to see a few Broadway shows and sights.

That is also Expiration Week…

Things to ponder.

30+ years ago, I spent a summer by the pool with the first edition of McMillan’s “Options as a Strategic Investment”. I read many chapters multiple times. For those on the learning curve, I recommend the 3rd edition which can be picked up used at ThriftBooks for under $4. There’s no need to fork over $60 or more for the 5th edition until one gets much higher up the options food chain and interested in more sophisticated newer products and strategies. I’ve seen it used for $35 – $40 but the best deal is always the library :->)

I’m also in the path of Irma. It’s been a good long stretch without that hassle. Bem. fingers crossed but looking for my water wings, just in case…

Check out these links for articles I have published in the past on this topic:

Advantages of Blog comments coming in your mail:

A1 It simplifies your life if you can get the Blog comments to come in your email. A2 You can delete the email after reading the text. Gmail throws them away automatically after 30 days. (You can also force deletion immediately, if you wish) B1. You can mark those comments important to keep B2. You can mark those comments you cant to revisit later. B3. You can mark those comments you do not have the time to read. B4. You can mark those comments you want to reply to later C. You do not miss any replies that are buried in earlier comments. D. You do not have to visit BCI site and search for replies links.

I finally figured out a simple system with Gmail to mark my emails. I have always had problems on how to mark my email with a system I could remember and use effectively. I use a green-check for completed emails. Yellow-Star for review later for less important items. Red-Star for Hot items to get to later (replies, reviews, important to keep. In Gmail settings you can just enable those flags and in what order then can appear.

For example I can search gmail for “BCI Has:Red-Star” and all the BCI emails I need to reply or review or important to keep are selected. Search for “has:red-Star” and I get all my important action items or important to keep.

Search for “has red-Star - put “bearish market” and I get all emails which are important for reply or review that does not mention the word “put”.but does mention the phrase “bearish market”. Result was a January 24, 2016 BCI email from Alan Ellman on Covered Call writing Inverse ETFs in extreme bear markets.

Thanks for your last response. Re EDU and it’s special dividend, I’d just like to confirm that I’m plugging the right numbers in 🙂 They paid a special div of 43c (after the 2c bank fee was taken out as you mentioned to Mario). Thus my strike price of $85 was altered to 84.57, and would I now change my stock purchase price from the original 8.50 to 8.07 and leave it at that? (I managed to close my position on Wednesday at 8.90 for the options and 93.59 for the stock – handy since I have to wait T + 2 before I can use the funds again.)

As the spreadsheet shows, without the dividend, your 1-month realized return in this trade is 3.4%. Adding in the $0.43 dividend as a credit, it becomes 3.9% (share credit + dividend - option debit divided by cost of shares).

Mantenha o bom trabalho.

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