I am playing around with options on my brokerage account, getting good deals and playing with money I can lose. I am considering using my Roth account (opened more than 5 years ago), since: - I am trading options expiring in less than 1y, so no chance of long term capital gain in normal brokerage - there is no capital gain at all in Roth - if I make enough gains, I can withdraw the principal without extra taxation from Roth - I can use Roth money to buy my first home, with no extra taxation worst case: I need Roth money before retirement age and I have to pay normal tax + 10% penalty. Unless it's a home (see above). In this case, it is likely that I will have no income, so low tax bracket anyway best case: I will have a huge Roth account for my retirement, tax free, so I can account for all those money as a nest egg and use my brokerage/savings for now till retirement am I missing something? Is it a no brainer for my case? some approx numbers: age: 30 TC: 500k roth account: 100k options gain YTD: 40k
Tech Industry
3d
37364
What happens when most of your team is Indian?
Cars
Yesterday
1152
Tesla ruined whole auto industry
India
Yesterday
629
A list of ethnic slurs on Indians that should be banned on Blind
India
Yesterday
1143
Ideal indian parents
Software Engineering Career
Yesterday
611
If your team does daily standups, your manager is a micromanager
Short term options are risky. IV will eat your investment if stock moves sideways.. But yeah Roth IRA is best if options goes as per your hunch because it's all tax free..
They might be selling short term options which can also be risky.
That's all another topic. I never do anything with unbound loss risk, so planning to do sell covered calls and buying long calls. Maybe playing with straddle and other strategies but always with < 10k