3. PLAYING IT SAFE Tax deductions can be very tricky and very tempting. The worst idea you could get into your head is to start being a risk taker when it comes to your tax return. You may not always get caught bending truth, but if you do, IRS will have very little sympathy. Deductions related to job search may also raise a bright red flag to IRS. These types of expenses tend to get examined more thoroughly than others.

So as you file your return, keep these things in mind:

1. Don't get creative and try to pile on expenses that are not truly exclusive to your job search. For example, a new suit may be needed for interviews, but its usefulness is not strictly confined to your job search.

2. Save your receipts. In case that your deductions do draw suspicion, you can save yourself a lot of pain, time, and money if you have proof of all your expenses. 3. CHECK WITH AN EXPERT. We here at Worktree.com are job search experts, not tax accountants. Before you file a return with new types of deductions, it would be smart to get professional advice. ============ CONCLUSION ============ Don't be afraid to try and save money, however, please speak to an expert if you have any questions. As long as you play by rules and only deduct legitimate expenses, you are in clear. Being out of work is an economic burden on its own. Money can be even tighter when you have to spend large amounts on your job search but these tips may help you recover a portion of this. Use those deductions to your advantage, and do it quick - April 15th is just around corner!

You can read this article directly online at: http://www.worktree.com/newsletter/job-seeker-tax-tips.html

Sincerely, Nathan Newberger, Managing Editor http://www.WorkTree.com

"Helping You Find More Jobs Faster"

Once both Calls are In-The-Money, our profit will always be limited by difference between strike prices of 2 Calls, minus amount we paid at start.

As a general rule, once stock value goes above lower Call (the $50 Call in this example), we start to earn profit. And when it goes above higher Call (the $55 Call in this example), we reach our maximum profit.

So why would we want to perform this Spread?

If we had just done a simple Call option, we would have had to spend $1 required to buy $50 Call. In this spread trading exercise, we only had to spend $0.75, hence - limited risk - expression. So you are risking less, but you will also profit less, since any price movement beyond higher Call will not earn you any more profit. Hence this strategy is suitable for moderately bullish stocks.

HORIZONTAL SPREADS

We now look a Horizontal Spreads. Horizontal Spreads, otherwise known as Time Spreads or Calendar Spreads, are spreads where strike prices of 2 options stay same, but expiration dates differ.

To recap: Options have a Time Value associated with them. Generally, as time progresses, an option's premium loses value. In addition, closer you get to expiration date, faster value drops.

This spread takes advantage of this premium decay.

Let's look at an example. Let's say we are now in middle of June. We decide to perform a Horizontal Spread on a stock. For a particular strike price, let's say August option has a premium of $4, and September option has a premium of $4.50.

To initiate a Horizontal Spread, we would Sell nearer option (in this case August), and buy further option (in this case September). So we earn $4.00 from sale and spend $4.50 on purchase, netting us a $0.50 cost.

Let's fast-forward to middle of August. The August option is fast approaching its expiration date, and premium has dropped drastically, say down to $1.50. However, September option still has another month's room, and premium is still holding steady at $3.00.

At this point, we would close spread position. We buy back August option for $1.50, and sell September option for $3.00. That gives us a profit of $1.50. When we deduct our initial cost of $0.50, we are left with a profit of $1.00.

That is basically how a Horizontal Spread works. The same technique can be used for Puts as well.

For more information on spread trading, visit:

http://www.option-trading-guide.com/spreads.html