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Proffittak writes:
it is illigall to do even what fidelity allows
the irs publication only allows selling covered calls
if you do more it is TAXABLE INCOME THAT YEAR!!!!!
Not having seen the post to which you are responding, I can only assume you
are commenting on the use of options in an IRA...i.e., only being able to
write covered calls.
If that is a correct assumption, I would respectfully disagree. IRA option
limitations are imposed by brokerage houses...NOT the IRS. There are no rules
or regulations limiting activity to covered calls...in fact, there ARE a
handful of brokerages that allow other option actiivity...it is NOT against
the law,,,certainly not the IRS law. Your comment that any "profit beyond a
covered call is taxable" is patentedly absurd...the idea of an IRA is
sheltered income/profit, which, as we all know, is not taxable until withdrawn
from the IRA.
I don't say these things to be contentious~~ only to set the often-mistaken
record straight. Quote your rules and regs if you disagree.
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