Thursday, June 17, 2010

RE: [TheOptionClub.com] Options in IRA's

 

At least in my Fidelity account:  spreads in IRA’s are ALLOWED (but there may be problems adjusting them or legging in from the online platform, requiring a phone call).  Hefty fees:  not any more; they are quite cheap.

 

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of rvd
Sent: Thursday, June 17, 2010 6:36 AM
To: OptionClub@yahoogroups.com
Subject: Re: [TheOptionClub.com] Options in IRA's

 

 

In TOS, what do you do for income?
Money markets, bonds, etc?
TOS charges are so high?

--- On Wed, 6/16/10, Dennis <dennis.lastor@gmail.com> wrote:


From: Dennis <dennis.lastor@gmail.com>
Subject: Re: [TheOptionClub.com] Options in IRA's
To: OptionClub@yahoogroups.com
Date: Wednesday, June 16, 2010, 5:50 PM



I trade options in my IRA nearly every expiration cycle.  It varies by broker, but some require you to fill out a questionnaire stating you have some sort of knowledge of options prior to allowing you to trade.

My IRA is with TOS, and prior to that Fidelity; both allowed options trading , although Fidelity restricts the spread types for some reason, and charges a hefty fee.  The only difference between my IRA and Brokerage accounts at TOS is that the IRA has no margin, and you cannot be naked short any position (not a TOS thing, but an IRA thing)

 

 

 

On Wed, Jun 16, 2010 at 5:43 PM, RobertH <robhansen5252@hotmail.com> wrote:

 

This was probably discussed in depth a while back, but I tried to place a simple bull call spread in my wife's IRA account with TDAmeritrade. The trade was rejected because margin is not allowed on IRA accounts. Spread Option trading requires margin as it is Level III of option trading.

I have my IRA account with BrokersXpress which is somehow associated with OptionsXpress. (Not sure of the linkage, but I also have a personal account at OptionsXpress and I can access both accounts from either account on the web platform. In fact the platforms are identical). Anyway, I have many different option strategies going on in my IRA including condors, diagonals etc.

Question: Does TOS allow spread trading in their IRA accounts, or have they possibly disallowed them after TDAmeritrade bought them out?

Thanks,
RFH

 

 

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