Tuesday, June 30, 2009

[TheOptionClub.com] Re: SuperPut - SID



Chris,

I opened a ticket with IB to clarify what can and can't be done in an IRA from their perspective. I believe they are 'option savvy' as I have been using them for several years.

I am unable to test different option strategies in my 'simulated account' since it is not an IRA but has the same trading level as my IRA - so I can't test apples to apples. I don't wan to do any 'testing' in my live account.

All that being said, I just felt the need to reply to you comments even though I have no interest in doing anything but buy-writes and CSP's in my IRA.

FLASH - here is the verbatim response from IB (unbelievably fast):

Stocks, covered call writing (covered shares are restricted), buying calls (funds equal to the aggregate exercise value of the long calls are restricted), and buying puts (shares subject to exercise are restricted), selling cash secured puts, spreads securities with European style expiration, futures contracts, and futures options. The IB IRA is structured as a Stock Cash Account (if you choose to trade only stocks) or as a Stock Options Level I Account (if you choose to trade options in your IRA). IRAs may also invest in US dollar denominated futures contracts, and future option contracts. http://www.interactivebrokers.com/en/general/education/faqs/ira.php?ib_entity=llc#38 Best Regards, IB

Interactive Brokers Customer Service

Jeff W

--- In OptionClub@yahoogroups.com, "Christopher Smith" <chris@...> wrote:
>
> Actually, you can sell naked puts in an IRA. They do need to be cash
> secured, though. You can also trade pretty much any any defined risk
> options strategy in an IRA. It's not limited to credit spreads.
>
> I'd suggest folks call their brokers if they're unsure about what is
> allowed. But, again, most of the restrictions are imposed by the broker
> and not a government authority. If you're with a broker that doesn't
> recognize that a covered call and a naked put are equivalent trades, why
> are you trading options with them? Obviously, they do not understand
> the product you're trading.
>
> Christopher Smith
> TheOptionClub.com
>
> --- In OptionClub@yahoogroups.com, Dennis Alverson <alv70669@> wrote:
> >
> > TOS allows credit spreads in IRAs. You just can naked shorts.
> >
>

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