“I agree that your returns are high based on put premiums collected compared to capital used. However, your method completely ignores the unrealized losses from stocks that have been put to us and the tied up capital. Interestingly in my case the unrealized losses are equal to all the profits making net profit close to Zero. Read The Oracles’ response hereNow add the taxes owed on the profits from premiums collected which are short term gains, where as unrealized losses that cannot be used to offset the gain, will be long term losses if ever or based on your strategy, will actually never be realized even though some of these companies may never come back from dead.”
Answer from The Oracle:
Taxes — I do my trading in ROTH IRA’s So everything is tax free. Please consult a professional tax expert on how to get your portfolio in some form of ROTH IRA. You may need to be forceful with them, since they are trained to minimize your taxes NOW, and not very far into the future.