| Author |
Message |
Paul Cox (Paulc)
New member
Username: Paulc
Post Number: 28
Registered: 2-2003
| | Posted on Wednesday, June 11, 2003 - 11:53 am: | |
I know that you are able to trade options long in an IRA acct as long as the percentage does not exceed 20% of the total acct value. You must also be an "accredited investor" net worth of 500k income of 200k those kind of things. The reason you cannot do naked options is that you could become overexposed. I would bet that with enough discloures you could write cash secured puts in the IRA acct. |
ctk (Ctk)
Junior Member
Username: Ctk
Post Number: 103
Registered: 7-2001
| | Posted on Tuesday, June 10, 2003 - 6:45 pm: | |
Lawrence,
Interesting concept. I would like to use 'puts' on forex (foreign exchange trades) instead of stock as it moves daily. Am not too sure if you can use IRA accounts to options trade. |
Lawrence Coppari (Lawrence)
Member
Username: Lawrence
Post Number: 654
Registered: 4-2002
| | Posted on Monday, June 09, 2003 - 12:58 pm: | |
For the past 10 years or so I have done a lot of option trading but I am always on the selling end. I know that IRA accounts permit covered call writing because mine does. But mine does not allow naked put writing. I generate a nice amount of spending money each month from my regular, margin account by writing out of the money naked puts on common stocks. In a sense, I sell insurance to others. My question is do any of you guys know of a brokerage company that permits this sort of trading with IRA accounts. There is no more risk in writing naked puts than there is in buying the underlying common stock providing you have sufficient equity in the account to cover the purchase should you have to do so. |