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Oracle Stock

SteelerFanatic said:
Holy shit that post scares me.

Off to google more details about wash sales.
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IIRC that scenario has a thirty day cooling off period. If it occurs at the end of the fiscal year, it might be more paperwork. The thing that SUCKS is that the new laws mean the brokerages now calculate wash sales for us and tell us what they are, but they don't have the full info to do this so their calcs are often wrong. The IRS still places the burden of a correct return on the taxpayer. My last two 1099s from Schwab have calculated my wash sales wrong significantly. Wash sales have a thirty day period on either side of a transaction that determine if a transaction was a wash. And again, this is vague memory. I'm pretty careful about wash sales.

Owensdad is a much better source than I am for stuff like this, unless he just fills his mouth with a bunch of buzz words and pulls the trigger. :laughing

The problem with wash sales isn't the taxes, it's the paperwork. I pay $400 a year for software that tracks and keeps sorted wash sales ( and all transactions, and prepares all the forms for your return.)
 
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Talking about the Buy Write aka Covered Call Option. Owning stock that has option trading available. For every hundred shares, one Call option can be sold. Your gambling on the Call option to expire 'out the money' aka below the Call Option strike price.
Its something to do with stocks that are flat and not going anywhere soon. Selling month long Covered Calls on your shares. If it goes well there is a profit of what you sold the Calls for and if it a loss you sell your shares at a slight loss.
 
SteelerFanatic said:
Holy shit that post scares me.

Off to google more details about wash sales.
Click to expand...

Lets say you had $40k in long term capital gains. Even at special rates, this would be a pretty big tax burden. If you sold some other securities in your portfolio that had declined in value at a loss, say for also $40k, you could offset your gains.

This is a perfectly legal tax move and many people do this towards the end of the year to generate capital losses. However, the irs's wash sale rule limits this strategy. It basically says that someone can't deduct a capital loss on a security they sold if within 30 days before or after the sale, purchases a "substantially" identical security. You have to actually put the loss towards the basis of the stock.

The wash sale window is actually 61 days, because it includes the 30 days prior and post the date of sale AND the date of the sale itself.
 
SNsMoto said:
Lets say you had $40k in long term capital gains. Even at special rates, this would be a pretty big tax burden. If you sold some other securities in your portfolio that had declined in value at a loss, say for also $40k, you could offset your gains.

This is a perfectly legal tax move and many people do this towards the end of the year to generate capital losses. However, the irs's wash sale rule limits this strategy. It basically says that someone can't deduct a capital loss on a security they sold if within 30 days before or after the sale, purchases a "substantially" identical security. You have to actually put the loss towards the basis of the stock.

The wash sale window is actually 61 days, because it includes the 30 days prior and post the date of sale AND the date of the sale itself.
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Yes, and if the wash sale transactions occur withing a a fiscal year then the loss is basically allowed as it is applied toward the underlying. Wash sales with in a year are different than those that extend into another year. If they extend you can't take your loss till the year you close the position.
 
I did a stock market game last fall for my business class. I dumped $10k into Oracle and $10k into 3M. Completely forgot about it until I read this post. LOL

ORCL - 302 shares @ $33...now $32.95 (as of this post)
3M - 106 shares @ $94.12...now $120.58 (as of this post)
 
yodaisgod said:
I did a stock market game last fall for my business class. I dumped $10k into Oracle and $10k into 3M. Completely forgot about it until I read this post. LOL

ORCL - 302 shares @ $33...now $32.95 (as of this post)
3M - 106 shares @ $94.12...now $120.58 (as of this post)
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Obviously you should have bought more Oracle, it's the stabler stock. :laughing
 
Reli said:
Oracle is in a boring industry that's already peaked, and they're just milking what's left of it.
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doesn't sound like you know much about databases... some of the most interesting technologies in the last 5 years have been new database designs.
 
afm199 said:
Selling options can trigger cap gains, and it can also trigger wash sale rules.. Sell an option and buy it back at a loss, short term, and it may mean that you carry that loss as a wash sale until the underlying position sells. Then the wash adjusts against the underlying. So you have tainted your entire position with one one transaction. (Tainted in the sense that you need to start tracking wash positions now) Tradelog is the name of a software package excellent for tracking cap gains and losses. I'm not sure this happens but I am sure I am careful with options sold and avoiding wash sale carryover into the next year.
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Ah, yes. I didn't consider that OP might consider buying back into Oracle as it sounds like they don't want their position.

As such, I didn't consider that the possibility of a wash sale. However, in the limited case of selling covered calls, the premium is straight forward, and there should be no risk of a wash sale since the calls are only for a sale of the security, and not the obligation of a purchase.

So worst case scenario is that options are sold, a premium is collected, and the underlying stock drops. I assume OP would sell to trigger the loss and assuming they do not buy back, it's all done.

Bronto said:
Talking about the Buy Write aka Covered Call Option. Owning stock that has option trading available. For every hundred shares, one Call option can be sold. Your gambling on the Call option to expire 'out the money' aka below the Call Option strike price.
Its something to do with stocks that are flat and not going anywhere soon. Selling month long Covered Calls on your shares. If it goes well there is a profit of what you sold the Calls for and if it a loss you sell your shares at a slight loss.
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Right, that's the idea. The possibility of a loss is still greater than slight, but at least you will have the premium to offset the loss.

Ideally with this strategy, the stock remains flat, you continue to write calls and profit! And it can be done even with stocks that are not entirely flat, just sell options with strike prices outside of the usual fluctuation range.
 
900ss said:
Stays static and has done for a few years now. Why? My wife has a fair amount, converted from Sun Microsystems and it never seems to move. I want to dump it and invest in something else. Just venting.
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It doesn't look so bad long term but it is not paying much as a dividend. Unless you bought it a looooong time ago, your gain is not going to be that much. At this time of year you can split the sale into 2013 and 2014 to help with income issues. It might be a good time to move on with this one.
 
Blankpage said:
Investments are risky, not much better than lottery tickets
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I disagree, though there are market factors that are outside of your control, I've made way more investing than I've ever made with lottery tickets.

But there's no disagreeing with the fact that all investments are inherently risky, but I don't think that lottery tickets are a fair comparison (though there may be some trades which might as well be considered buying a lottery ticket - ie: buying out of the money weekly calls)
 
OP, may be after our government defaults on the 17th, the stocks will come down. May be time to take a short position?
 
mike23w said:
doesn't sound like you know much about databases... some of the most interesting technologies in the last 5 years have been new database designs.
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he's partially right. The spike may well be over in the near future, specifically big data/hadoop, analytics, predictive analysis and all that fun stuff. In memory databases are still interesting and have room to grow.
The bread and butter stuff (transactions) will always grow and generate money. Just depends which company is grabbing more market share.
 
Thanks for all the input and points of view. I wouldn't be comfortable shorting the stock as I am aware of the practice but do not understand it enough to use. I will admit I am pretty uneducated beyond the basics of investing.

I don't care for Larry Ellison (I bet he will lose sleep tonight :wtf) and although I know it is a ridiculous notion I feel that holding the stock we do helps him.

My wife did not enjoy her tenure at Oracle after the Sun purchase and I simply am no longer interested in keeping the stock. Now I let emotion in it's all down hill from here. :teeth

Simply put I would like to invest the money somewhere other than Oracle. Of course, if it starts going up I will do a complete about-face.
 
Gold is back in the 1200s :wtf
Last time it was this low and climbing thought of getting a Mexican 50 peso Gold piece. Road trip :)
 
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