|
PureBytes Links
Trading Reference Links
|
A margin account is not required to trade long options (buying and selling
calls and puts). An OPTION ACCOUNT is needed.
Many brokers DO OFFER options trading in IRA accounts (at least standard IRA
accounts--don't know about the other types.).
I use Wall Street Access and frequently daytrade options in my IRA account.
Schwab does not allow anything except covered calls (They don't even allow
married puts--they tried to tell me that this is taking a "long term view".
I said, "you mean losing money in a down market is "taking a long term
view"?? No answer--just silence.)
But WSA does allow it, and is fairly competent. Commissions are moderate
discount, but service is excellent. You can always reach them by telephone
if necessary, and they have a very good attitude. Executions tend to be
pretty good, with fills sometimes better than the limit price. Only problem
is that the Web site sometimes goes down, but you can telephone and get the
same commission in that case.
I really wish there was a way to trade options in my kids UGMA accounts.
Nobody offers this to my knowledge (also for the down market scenario).
Dave Johnson
-----Original Message-----
From: Marlowe Cassetti <marlowec@xxxxxxx>
To: Fred <srqblue@xxxxxxxx>; omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
Date: Friday, October 01, 1999 12:49 AM
Subject: Re: Options in IRA
>Fred,
>
>I'm pretty sure that the IRS regs prohibit a stock margin account in an
IRA.
>You cannot buy options without establishing a margin account; ergo no long
>options (buying puts or calls). With that said, I believe the IRS permits
>futures to be held in an IRA account.
>
>My thought is that a perfect strategy (if one has a killer futures trading
>system, i.e. "The Holy Grail") is to set up a Roth IRA Futures account and
>make a mint tax free.
>
>Marlowe
>
>----- Original Message -----
>From: Fred <srqblue@xxxxxxxx>
>To: <omega-list@xxxxxxxxxx>
>Sent: Thursday, September 30, 1999 4:29 PM
>Subject: Re: Options in IRA
>
>
>> On Thu, 30 Sep 1999 17:11:18 -0400, you wrote:
>>
>> >You can trade options w many brokers as part of an IRA
>>
>> Ahhh, Forgive me I should have been more specific. Most ALL IRA
>> accounts may sell covered calls. What I am looking for is a broker
>> that will allow the BUYING of puts and calls.
>>
>> Fred
>>
>>
>> "Success is the only test of genius" -R.Adm Daniel Gallery 1901-1977
>>
>
|