Also Arbitrage between Retail and Roth Accounts
Posted on: May 16, 2012 at 21:07:07 CT
Mark of the Tiger MU
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If the premium of an in the money call is a good value sell to open a covered call in your Roth. If the share price drops enough buy equal # of shares of the stock in your retail account.
Further drop in share price, losses in retail acct are mitigated by tax loss but you realize a nearly full gain without tax consequence in the Roth.
Increase in share price you win both ways. Just gotta pay taxes from the Retail acct depending on when you sell.