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Strategies & Market Trends : Option Strategies

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From: Elroy	3/27/2024 8:47:26 AM
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Hola! I've been selling some puts in the past year, I guess this is a place to discuss the strategy? Back in Oct last year I sold short a lot of NGL $5 Apr and $7.50 Apr puts, and bought NGL $2.50 Apr calls. NGL is an MLP, so the puts are section 1256 contracts, and are taxed differently from equity options. Regardless of how long you hold them, the gain loss is 40% short term and 60% long term. And the strangest thing is they mark to market on Dec 31st, forcing you to realize your gain or loss each tax year even if you didn't close the position. Anyways, recently I've sold some Oct $7.50 NGL puts, and I'm just waiting for the unit price to go higher. Not a super complicated bet, but a way to be more long without investing my capital. Lets see. I bought this Friday CCL $15.50 calls yesterday. CCL reports this morning. Hopefully it will go up!

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