Humble

Member of the month award for April goes to @t'pee This member has been with SO less than a year, but he became a valuable contributor with a lot of trading ideas. Well done!

Please welcome our new mentor @zxcv64 I'm sure most members already know this long time member and can appreciate his experience and wisdom. Now we just make it official.

This is my list of Recommended reading - I believe most your books are there.

Personally I believe you won't find a better value than SteadyOptions.. but I'm biased of course. I mean, an average course from Sheridan (or other providers) is around $300-500. Most of those courses are for beginners. But they typically teach you theory only. And today there is a lot of free stuff on the internet. If you want to learn about diagonals for example, you can subscribe to our Simple Spreads program for only $575 for a full year. You will gain a practical experience and watch professional traders managing their trades. Learn as you go.

Member of the month award for March goes to our long time mentor, the master of the scalping, @krisbee His contributions are highly appreciated by members!

This right here is the value of this community. We aren’t really buying an alert service to use. We are buying a community that also has an alert service to show us a dozen examples a month of how to put it into action. That is much more valuable to me — to empower me to be independent rather than ‘hook’ me on a service that keeps me continually dependent on someone else. @nrexpress

I'm not so sure about it. In order to risk the same amount, you need to reduce the position sizing by half. Is the average return double? I highly doubt it.

No, they don't allow spreads at all. Here is what IB allows: https://www.interactivebrokers.ca/en/index.php?f=13406&p=rsp

But if we trade in SO and SS only debit spreads (with some rare exceptions) which are defined risk, and no margin is used, why this could be an issue?

Yes - but this is not black and white like in the US where everything under one year is defined as short term capital gains. Who decides what's short period of time? One week? One month? 3 months? Plus they mention that this is one of the factors, not the only factor. What about someone who has a full time job but also trades and holds for short period of time? But again, the main point here that it's not about options or stocks - it's about many other factors, and it's probably better to let the professionals to do their job and advise you how to treat it. And if in doubt, second opinion is always advisable.

If you report it as income, it's not because of short holding period or because it's options, but because of your personal situation. Unlike US, In Canada there is no different taxation for short term and long term gains. As for deductions - I assume most traders/investors have some dividend paying stocks where dividends are reported as income regardless.

My point is that the reporting (income or capital gains) is determined by the personal situation of the taxpayer. The key sentence is "The CRA has stated that the proceeds of sale will normally be considered to be on income account (income from business) where the person is a “trader or dealer in securities”. If the taxpayer is considered a trader or a dealer, then it's income, no matter if it's stocks or options. Otherwise it's capital gains. All securities (options, futures, stocks, commodities etc) are treated the same for that matter.

Correct. In our case, OPC (Option contracts). But it doesn't distinguish between short term and long term contracts. I didn't find any mentioning anywhere that options are treated differently from stocks for the purpose of taxes reporting.

Here is a publication I found - https://www.taxtips.ca/personaltax/investing/taxtreatment/options.htm "For most people, the gains and losses from call and put options are taxed as capital gains (on capital account)." And another one - https://ca.rbcwealthmanagement.com/documents/29328/29356/Taxation_of_options_transactions_04132018_high.pdf/c632c8ea-0e32-4e55-9c5d-f8475c09fa75 "the proceeds from every security you sell in that year and all subsequent years will be treated as a capital gain or loss"

I read publication IT479, and I didn't see any mention of short or long holding period. Also, if there is no mentioning of it in T5008, why options should be be treated differently from stocks? T5008 mentions "Securities", it does not have separate lines for stocks and options. When I said how CRA would know, I meant how would they distinguish between stocks and options if T5008 doesn't?

But there T5008 doesn't mention short or long term holding period - there is only one line for the cost and proceeds, so not sure how CRA would even know. IB have also the T5 form which is for income.

You buy options and then sell them, how is it different from buying and selling stocks? IB has tax reports, one of them is T5008 where: Line 20: Cost or book value Line 21: Proceeds of disposition or settlement amount It is reported as (21-20)*50%. The only case you would need to report it as income if this is your full time job and main source of income.

Yes.

@PacMan yes, you can upgrade at any time. If you don't use ONE, once you upgrade to a full bundle, you will get ONE for 12 months.

Absolutely!

No, all bundles are in the first post.

You can upgrade to 2 services bundle. Or you can do the Lorintine bundle which is only slightly more expensive before the rice goes up on March 1st.

This is a friendly reminder that free access to SS forums ends on Sunday. Members who wish to join are welcome to use one of the links on the subscription page or join the Lorintine Bundle (which includes Simple Spreads along with Anchor and PutWrite). At $895/year, it translates to less than $25 per month per service. We are basically giving it away at this price. The price goes up to $1,095 on March 1st and is expected to increase to ~$1,500 later this year.

Member of the month award for February goes to @Ringandpinion I cannot believe that @Ringandpinionhas been SO member for less than a year. In this short time he became one of the key members of our community. His contributions and his sense of humor are always welcomed and well received by our members. Thank you @Ringandpinion!!

450 GBP