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
The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading. All messages and postings, and any materials circulated are provided for discussion and educational purposes only. No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice. All investors are encouraged to consult a qualified professional before trading in any security. Stock and option trading involves risk and is not suitable for most people. There is no guarantee that any information provided is accurate and, may in fact, be wrong. It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student. As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
No comments:
Post a Comment