8

Tax exempt contributions made to an employer Section 125 Cafeteria plan are governed by the IRS. The IRS states that the election change may not be made during a plan year except for certain qualifying events. Off plan-year changes due to eligibility under a different employer plan, loss of eligibility under a different employer plan and open enrollment at ...


5

No, futures do not carry a premium. The premium on an option contract exists because the rights and obligations of the parties involved are not equivalent. On an option, one party has an obligation while the other party has a right to buy or sell at a price (with no obligation to do so). This difference in obligation is why the side that sells the contract ...


4

Your "relatively high" income will likely keep you from getting a subsidy. To be sure, there's a calculator that will help you. For most tax related issues, it's the year's total that matters. If you made $90K in 6 months or even two weeks, that's income in 2015.


4

It is not wasted: it bought you peace of mind. Perhaps you would have had peace of mind without it, because of the particular industry you are in. But people from any industry can get sick or give birth, and not all industries are as evergreen as people think. A number of my onetime programmer colleagues now drive a truck or run a farm because new ...


3

Future prices can be more or less than the spot price. This may seem like a premium or discount. These differences are due to carrying cost, borrowing cost, and future expectation.


2

Intuitive? I doubt it. Derivatives are not the simplest thing to understand. The price is either in the money or it isn't. (by the way, exactly 'at the money' is not 'in the money.') An option that's not in the money has time value only. As the price rises, and the option is more and more in the money, the time value drops. We have a $40 stock. It makes ...


2

It will depend on your broker's policies, but yes you should be able to withdraw the cash just as if you had sold stock. From a collateral standpoint there's nothing that the cash will be needed for later (unlike, say, selling a covered call where you need to hold the underlying stock to ensure that the call can be exercised).


2

I feel for you, I just got done writing an email dealing with my insurance company and the roofer. I have made about 30 calls to the insurance company in order to get my claim paid. My home was also damaged by Irma. There are not many options available to you. If I found myself in your shoes, I would pay the insurance out of pocket. It is probably less ...


2

I have started doing option trading and as per my knowledge so far price of option rise or fall depends upon the delta. Sorry to nitpick on the wording but the price of option rise or fall does not depend upon the delta. Premium changes because of time decay, an ex-dividend date approaching, change in implied volatility, and change in carry cost. On a ...


2

In the early days, option premium was considered the income received by the seller of an option. Over time it has come to mean the option's price and therefore, either way it's considered premium.


1

To add to it, during these times brokers will alter marginal requirements. For instance, VXX sometimes during the year allows 3-4x leverage for day traders and others times less than 1x your equity (70% of your total equity) for active traders.


1

SPXS is not a particularly liquid or highly traded ETF. Trading 25% of ADV (~700,000 shares or ~17 million dollars) will likely be very expensive unless done carefully. It depends a lot on how you trade, but without trading skillfully you could lose 1/2-2% on the buy and 1/2-2% on the sell pretty easily. This could cut the 9.85% gain nearly in half.


1

Per Publication 550 and based strictly on the wording of your question, it is a short term gain. The quote from the IRS is if you enter into a closing transaction by paying an amount equal to the value of the put or call at the time of the payment, the difference between the amount you pay and the amount you receive for the put or call is a short-term ...


1

With short option positions, if the option is closed by buying back the option to close or it expires, the result will be a short-term gain or loss. That holds true whether it's a standard option or a LEAP. You can find mention of this at Zacks, Investopedia, in Forbes articles, etc. Consult your accountant for verification of this. EDIT: As for your ...


1

The premium received from selling the covered call is yours to do with as you wish. You can leave it there, withdraw it or use it to buy something else. For example, you could buy 100 shares for $27,600. Then seconds later, you sell the Dec '19 275 call for $29 and the $29 is now in your account. OTOH, you could place a Buy/Write for $247. Upon ...


1

There is no expected rate of increase - inflation is only a minor factor. Important factors include: How much the insurance company thinks they can get away with increasing your premium every year. How many claims they have paid out recently. To a large extent, their losses are for compensation to third parties, rather than to the insured's own property. ...


1

You claim the tax credit for the tax year in which it was received. The government will send you a 1095-A denoting your monthly premium as well as your monthly advance premium PTC. You'll use form 8962 (Premium Tax Credit) in your filing and if your income ends up at your estimation, the tax credit is all yours.


1

Its difficult to answer questions about financial efficiency when not all options are considered. If it was me, I'd buy term, which will run you about 18/month and less if you did it on a yearly basis. For 26 years this would cost you 5616 in total. If you invested the difference in an S&P 500 fund you would end up with over 60K after the 26 years. ...


1

Assuming you are filling in ITR-1 using Income Tax department website, fill in the details in B4 under section 80C. As this would not match with TRACES Form-16 issued by Employer, there maybe a query at which point in time you would need to furnish the details. In future it is advisable to pay the premium early and submit to your Employer.


1

It's not that straightforward, even though your gamma will change your delta on the fly, you likely won't see the full $.48 after such a small move. If the vega drops due to lack of volatility while the stock is moving up, those few percentage points up might help your delta (2% gain $50 to $51 in your example) but will be partially negated by volatility ...


1

There are several assumptions you made, that don't match the current laws: Preexisting conditions, are no longer a thing to worry about. When you stop your old policy they give you a Certificate Creditable coverage . The law only allows an exclusion of 12 months, but the certificate shows that you had coverage. As long as the coverage was for at least 12 ...


1

The methodology of Futures Pricing is completely different than options pricing. When buying, say, a gold contract, 100oz * $1700 or so, that's $170,000 I have at risk. The fact that the margin required is some smaller number is beside the point, the margin is regulated by the exchange, but the obligation to cover any loss is all mine, and if the price ...


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