Option Trading Articles: Re: [ConservativeOptionStrategies] rmbs

Thursday, December 31, 2009

Re: [ConservativeOptionStrategies] rmbs

Fwiw - Fidelity allows bull put spreads and uses the spread $ against buying power (or $5000) per spread - whichever is greater,

Sent from my iPhone

On Dec 31, 2009, at 5:21 AM, Jack Wigandt <nhhobbyfarmer@yahoo.com> wrote:

                       Vandollar,
                                      Others on this group have given you the answer that yes you can, it depends on the option level approval that your broker will allow. May I share my experience as I trade with Schwab also?
                                      Schwab is know to be the most conservative of brokerage firms. I wanted to add level 2 so that I could write simple spreads and was invited to apply for the pilot program to do spreads in IRA accounts, something Schwab has never allowed before. I have more than sufficient assets and years of trading experience. I was then promptly turned down not once but twice and also in my taxable account I use to generate income to pay the bills.
                                       By the way, the brokers and option team specialists I have spoken with all agree, some Schwab polices are "out of whack." I can do CSPs (Cash Secured Puts) and buy long PUTs to create a spread with two trades and two commissions but NO WAY, can't trade it as a spread order. This makes little sense to me but that is Schwab.
                                      Other firms tell me yes, you will most likely be approved with us for the trading you wish to do and I am thinking of transferring one account. I will stick with stogy old Schwab for the bulk of my IRA funds and one income account due to their excellent international and banking services. There is a very high probability that I will be enjoying a deeper level of retirement overseas and Schwab makes life simple for EX-pats living outside the US. I also use Schwab equity ratings as apart of my stock selection process.
                                                 Regards,
                                                       Jack

From: Vandollar <mercdesdrvr@yahoo.com>
To: ConservativeOptionStrategies@yahoogroups.com
Sent: Wed, December 30, 2009 7:00:50 PM
Subject: Re: [ConservativeOptionStrategies] rmbs

Can an investor buy leaps and sell CCs against them? Schwab only lets me buy stock and sell covered calls or do unwinds. Any places let a small CC investor do this?

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