Originally Posted by scho63:
No brokerage firm allows average investors to take unlimited loss positions with shorting stocks or naked call writing without substantial equity of usually $250,000.
Not unusual.
I wasn't looking to do anything crazy like that but simply place a long call on a stock. A few hundred dollars for the premium. Couldn't lose more than that so I'm not sure why that's not allowed? [Reply]
Originally Posted by scho63:
No brokerage firm allows average investors to take unlimited loss positions with shorting stocks or naked call writing without substantial equity of usually $250,000.
Not unusual.
RJO does in the futures. They make margin calls. [Reply]
Originally Posted by Buehler445:
RJO does in the futures. They make margin calls.
The investor has some assets up as collateral such as a home or property. No one is going to let Average Joe get short and take a $500,000 loss with no ability to cover the margin call. [Reply]
Originally Posted by lewdog:
I wasn't looking to do anything crazy like that but simply place a long call on a stock. A few hundred dollars for the premium. Couldn't lose more than that so I'm not sure why that's not allowed?
You were just looking to buy a call? You normally have to file additional paperwork and show you are a sophisticated investor. Then they have to approve you.
If you own a stock and you want to write a covered call option against it, you usually need a margin account. Your position is protected as if your option was executed and called, you have the stock to hand over. [Reply]
Originally Posted by scho63:
The investor has some assets up as collateral such as a home or property. No one is going to let Average Joe get short and take a $500,000 loss with no ability to cover the margin call.
Yeah. Maybe since mine are hedges they figure I have the physical grain to cover the position but my account doesn't have any physical collateralization on it.
Speaking of which, I just got my margin call. Yay!! [Reply]
Originally Posted by O.city:
So off topic a bit but I had a pretty good weekend in vegas this past weekend and made out with some cash. How do taxes in that work?
How much cash. At some point, the casino reports those winnings and will have to be listed as additional income. I don't believe the casino taxes the money but they report it, I assume. I've never worried about it but I've never won what I would consider large sums. [Reply]
Originally Posted by eDave:
How much cash. At some point, the casino reports those winnings and will have to be listed as additional income. I don't believe the casino taxes the money but they report it, I assume. I've never worried about it but I've never won what I would consider large sums.
Yeah, casino winnings aren't subject to withholding/deduction, generally, but you're supposed to report winnings. I don't know at what point the casino's themselves file a 1099 or whatever with the IRS.
However, you can offset winnings by losses within the same year, though obviously it would be best if you had some records around this to show the losses. You can't take more in losses than you had in winnings, AND your losses can only be taken if you itemize deductions I believe, so if you're taking the standard deduction, oh well.
As always, the advice on here is worth precisely what you paid for it. :-) [Reply]
Originally Posted by Amnorix:
Did the casino request your social security number at any point, or do they already have it because you have some kind of account with them?
Originally Posted by O.city:
I took 2 grand in cash and walked out with 14 g.
Personally, I wouldn't claim it. If they catch you, meh about the penalty. It's free money regardless. It's another gamble but you won't lose much. Drug dealers lose more though laundering.