Understanding Binary Options Trading Signals. Binary Options trading signals are indicators or suggestions often made available by binary option experts or binary option specialized automated robots. Ultimately, binary options trading signals have the potential to generate a considerable amount of profit as experts who recommends them are highly versed in market analysis with a lot of experience in the binary option trading arena. It is safe to say that achieving an overall increase on your investment is possible with binary options trading signals. While it is important for every trader to dedicate a considerable amount of time and effort to education and gaining experience, binary option signals can be a very useful tool along the way. It isn&rsquot enough to just choose a robot or other types of automated trading services to place trades on your behalf. Blindly following some algorithm may not be profitable at the long run. While good binary trading signals can provide you immen
Tax Treatment For Call & Put Options. It is absolutely crucial to build at least a basic understanding of tax laws prior to embarking upon any options trades. In this article, we will look at how calls and puts are taxed in the US, namely, calls and puts for the purpose of exercise, as well as calls and puts traded on their own. We will also look at the “Wash Sale Rule” and the tax treatment of option straddles. But before we go any further, please note that the author is not a tax professional and this article should only serve as an introduction to the tax treatment of options. Further due diligence or consultation with a tax professional is highly recommended. Firstly, when call options are exercised, the premium is included as part of the cost basis of a stock. For example, if Mary buys a call option for Stock ABC in February with a $20 strike price and June 2015 expiry for $1, and the stock trades at $22 upon expiry, Mary exercises her option. Her cost basis for the 100 sha