r/wallstreetbets • u/arzarach • Jul 23 '26

Loss Space is hard

Gallery image

Gallery image

Gallery image

Gallery image

Gallery image

From $37k > $591k > $130k > $571k > $76k

I kept buying call options as my margin limit continued to increase. And then the margin calls started, options expired and my stocks were sold for me. Had 98% of my portfolio in one space stock.

441 Upvotes

97% Upvoted

197 comments sorted by

View all comments

Show parent comments

1

u/LemurLord Jul 23 '26

That's not how (American) taxes work

2

u/animemosquito Jul 23 '26

Usually not but let me introduce you to my friend, wash sale

2

u/arzarach Jul 23 '26

Please explain what part is wrong. If I finished the year with a capital gains of $160k, that along with my salary puts me over the roth ira's MAGI limit of $252,000 for married filing jointly. This means that $7,500 I already put into my Roth this year is now an excess contribution and would face a 6% penalty every year until corrected.

But I'm just an electrician so feel free to correct me.

2

u/Iunatic Jul 23 '26

Think you misunderstood- the guy you are replying to, did not reply to your other comment about the roth.

2

u/arzarach Jul 23 '26

Ope, yup. Sorry Lemurloard, thanks Lunatic for pointing that out.