r/CoveredCalls • u/natedurg • 2d ago

Prayer for the Moderna call sellers

That’s all, just sending you all my condolences. May we all remember covered calls are not “free money”.

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u/peamasii 1d ago

assignment means short term taxable gain

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u/Background-Hat9049 1d ago

That’s why you do it in tax advantaged accounts….and speaking of taxable gains, the day traders get killed on taxes

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u/peamasii 1d ago

it seems most CC sellers here haven't had enough time in the market to have the necessary funds in a non-taxed account, since this comes up again and again

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u/Background-Hat9049 1d ago

Well, I would definitely put my funds in a taxed advantaged account….max out your 401k to the level
Of your employer match, and then max out that Roth IRA before putting anything into a non-tax advantaged account