▲ 11 r/NEOSETFs
NEOS on Margin and ROC
Hi everyone,
This topic came up recently and has been on my mind.
As currently stand, when you purchase NEOs on margin, dividends comes as “payments in lieu of dividends” rather than as "return of capital". So you'll need to pay tax as ordinary income as tax at regular rate. This appears to be the case with Robinhood, IBKR, and few other brokers.
I recently came across Fidelity’s policy on substitute payments:
Fidelity – Annual Credit for Substitute Payments
According to Fidelity, they may provide an annual credit of up to 27% for qualified dividends. Is anyone here using Fidelity on margin who can confirm whether they received this credit?
I’ve been running the numbers, and it looks like this could provide a slight edge for me.
Thanks!
u/zerofrakhere — 1 month ago
Keep showing closed position (mobile)
Yes I know I trade on mobile but regardless which platform there should be consistency esp dealing anything with financials.
Close my spx spread but still show position as open.
Close app , reinstall app already
u/zerofrakhere — 2 months ago
▲ 1.7k r/wallstreetbets
1.3M to 450k to 1.25M
In Dec peak I was at 1.3 M , but after the stella Reddit Q4 earnings that tanked the stock 40% my port dipped hard to 440k
Made it all back 1.25 m today with 10k shares RkLB at $4.71 cost basis ( sold 25% today) and lots of 0DTE spx spread.
Don’t give up and keep on fighting. This is life changing money so going to scale back my trading .
u/zerofrakhere — 5 months ago
▲ 1 r/wallstreetbets
Don’t give up! Keep chasing and leverage to the tires
Huge loss with RDDT after they had a great Q4 earning. Account was down -66% at some point
Lots of 0DTE spx spread, selling and buy option and riding the RKLb high.
And of course not selling yet because I’m not a bitch and I don’t want to pay taxes
Keep your tits up high and leveraged on. Sorry for the bad title.
u/zerofrakhere — 5 months ago