<p>On the popularity of vxx, the contango issues have been become very well publicized, yet the volume keeps going up.</p>
<p>It will stop…</p>
<p>Takes time…
could take years…
Thanks for the info…</p>
<p><a href=“VXX Interactive Stock Chart | iPath Series B S&P 500 VIX Short-Term Futures ETN Stock - Yahoo Finance”>VXX Interactive Stock Chart | iPath Series B S&P 500 VIX Short-Term Futures ETN Stock - Yahoo Finance;
<p>This is an interesting chart…</p>
<p>[XIV</a> Basic Chart | VelocityShares Daily Inverse VI Stock - Yahoo! Finance](<a href=“XIV Interactive Stock Chart | Credit Suisse AG - VelocityShar Stock - Yahoo Finance”>XIV Interactive Stock Chart | Credit Suisse AG - VelocityShar Stock - Yahoo Finance)</p>
<p>I dont really like being long stuff that can drop that fast unless it is an option…</p>
<p>I’m too old for this schwab tax cr**. If I have a wash sale loss disallowed, shouldn’t my gain be increased? I come up with a very different total gain for a stock for the year that is substantially higher than what is being reported on the 1099. Any ideas from you guys who have schwab? I’m tempted to let it go since my tax liability is lower.</p>
<p>Well…that is up to you…</p>
<p>Schwab will fix your 1099 if you want them to…</p>
<p>You have to tell them…</p>
<p>Does what I’m asking make any sense on the wash sale?</p>
<p>I don’t use Schwab but I have a friend that does and he was complaining about the Wash Sale stuff recently. It shows up on the Fidelity reports but I don’t think that it actually affects taxes (if it does, I’ll be annoyed - right now I just trust the software).</p>
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<p>I’ve made my target for the year and have considered getting out and just trading the best of setups for the rest of the year which could mean being out for a while. A lot of setups come my way and I ignore the vast majority of them because it takes effort to learn a stock.</p>
<p>That’s the nice thing about a day job. You can just not trade for a year if you don’t want to.</p>
<p>Unfortunately, there’s that addictive side of the market. It helps to have a lot of other things going on in your life so that you don’t overtrade.</p>
<p>Yes…and no…</p>
<p>Sorry…</p>
<p>I have wash sales…and they are nonsense…</p>
<p>But the profits and losses are fairly accurate…
The costs are adjusted…</p>
<p>If you ignore the wash sale numbers…
Are your realized gains or losses incorrect? Probable they are incorrect</p>
<p>Can you pinpoint specific trades where the profits and losses are wrong? </p>
<p>If so, you call Schwab and tell them…
They will go thru those trades and all the trades and correct the numbers…</p>
<p>I am not paying taxes on those wash sale numbers and the options expired so I don’t have to worry about future costs of those options<br>
being incorrect. The options no longer exist.</p>
<p>If you have stocks that you hold with incorrect costs because of wash sales…that will be an issue going forward…</p>
<p>Do you use a cpa?</p>
<p>Schwab uses two sections…the 1099 that goes to the Irs and the section
that has option pnl that doesn’t. You have to combine the two sections…to get your true pnl…</p>
<p>Ok…I would start by looking at trades with wash sales…ignore the wash sale number…are the profits correct?</p>
<p>I want to reduce the number of trades I make but since I have a positive expectancy, the more I trade, the more I make.</p>
<p>My guess is the trades where options closed in the money and you were assigned or you exercised are causing problems with the gains and losses.</p>
<p>Yes?</p>
<p>The XIV chart points up the fundamental problem–that volatility can spike dramatically, crushing the inverse etf in the short term. Using something like spxs in a pairs trade can mitigate the problem to a certain degree, but not entirely.</p>
<p>However, when volatility does spike, XIV becomes the nearest thing going to a sure thing in the intermediate term.</p>
<p>Another possible way to play vxx contango is simply to buy leap puts. One telling stat: vxx has been a loser in every rolling twelve month period since the debut of the product. The one situation that creates big trouble for this strategy is a 2008 style crash. The simulated chart since 2004 (which I posted some time ago) looks like this</p>
<p>[VXX/XIV</a> Chart Porn | MarketSci Blog](<a href=“Private Site”>Private Site)</p>
<p>That is interesting EMM1. But does the price of the leap puts reflect the contango?</p>
<p>There are super bright people analyzing this and they are making markets in the options…</p>
<p>The chart in 6343 was not reflecting a 2008 crash…</p>
<p>Xiv was crushed…</p>
<p>My take is that if TurboTax doesn’t handle Fidelity or Ameritrade wash-sales, then there would be hell to pay from TurboTax’ customers as a bunch would find out and it would get into the news. Fidelity and Ameritrade have large customer bases as they’ve grown their online trading franchises. Schwab seems to be more known for being a discount broker many years ago before trading went online and maybe they don’t court the small trader as much.</p>
<p>If there were a problem, I’d expect a TurboTax update to fix it. BTW, I fired up TT and no updates. That’s the first time that’s happened in a while.</p>
<p>I had a look on the web and there are various reports that major brokers have had some issues for the last couple of years. I didn’t see any problems reported this year though.</p>
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<p>If you are making more money with more trades, and you want more money, then you should trade more if you don’t mind the time cost of research and trading. There are a lot of things that I want to do this year related to downsizing and decluttering and fitness and that takes away from time for research and trading.</p>
<p>Those cases of which there only two, I figured out and the wash sale stuff had no impact. My problem is with stock that I bought and sold that included dividends that were reinvested into buying more stock. My calculated gain is higher than the realized gain which is greater than proceeds - Cost basis which takes into account disallowed wash sales.</p>
<p>The incorrect numbers are given to the irs…</p>
<p>Call Schwab…</p>
<p>Won’t be a big deal to fix. They will recalculate the numbers on the reinvested dividends.</p>
<p>You will get a new 1099. </p>
<p>You may have to file an extension which is no big deal.</p>
<p>I go to an accountant for this tax form as turbotax doesnt handle it but I want to understand it ahead of time as it has things reported and not reported to the IRS which is utter bs.</p>
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<p>I specifically don’t do this to avoid this issue. I don’t want to have to keep track of a bunch of little shares - I want the tax software to do it all correctly.</p>
<p>I want to understand it too. You scared me doct so I looked at my revised 1099 from Schwab and it looks good.</p>