 |
developer17
Registered: Jan 2004
Posts: 9 |
06-22-05 05:41 PM
Folks,
I had 16 Contracts (GOOG) (call options - strike 280) in my IRA account at IB. Last week at 4 PM, Google was still under 280 and was not able to sell the options since the bid was nil. Since GOOG was under 280, I just let the options expire.
But since GOOG moved to 280.30 a little later after the close, my options were automatically exercised by the Options clearing authority. I had just a balance of over $800.00 in my account
On Monday, IB liquidated GOOG at the open for a net loss of around $10,000. Now IB wants me to deposit $9200.00 in my account to settle the negative balance.
I assumed that since IRA's are cash accounts, I would never have to deal with a margin call. But now I am in serious trouble. Lastly, I cannot contribute $9000.00 to an IRA in any given year. It is well past the maximum allowed.
Please advise ...
thanks
|
| |
|
Edit/Delete • Quote • Complain |
Truff
Registered: Oct 2003
Posts: 971 |
06-22-05 05:49 PM
Quote from developer17:
Folks,
I had 16 Contracts (GOOG) (call options - strike 280) in my IRA account at IB. Last week at 4 PM, Google was still under 280 and was not able to sell the options since the bid was nil. Since GOOG was under 280, I just let the options expire.
But since GOOG moved to 280.30 a little later after the close, my options were automatically exercised by the Options clearing authority. I had just a balance of over $800.00 in my account
On Monday, IB liquidated GOOG at the open for a net loss of around $10,000. Now IB wants me to deposit $9200.00 in my account to settle the negative balance.
I assumed that since IRA's are cash accounts, I would never have to deal with a margin call. But now I am in serious trouble. Lastly, I cannot contribute $9000.00 to an IRA in any given year. It is well past the maximum allowed.
Please advise ...
thanks
Since when can you trade options besides covered calls in an IRA. If thats the case the broker should not of allowed you to enter that trade in the first place and should be held accountable
|
| |
|
Edit/Delete • Quote • Complain |
vulture
Registered: Mar 2002
Posts: 1538 |
06-22-05 05:55 PM
Quote from Truff:
Since when can you trade options besides covered calls in an IRA. If thats the case the broker should not of allowed you to enter that trade in the first place and should be held accountable
If you enter a self directed IRA, you can trade all sorts of products and strategies. Can even trade futures, various options spreads, etc, etc.
|
| |
|
Edit/Delete • Quote • Complain |
wilburbear
Registered: Oct 2004
Posts: 3038 |
06-22-05 06:01 PM
Quote from developer17:
Folks,
I had 16 Contracts (GOOG) (call options - strike 280) in my IRA account at IB. Last week at 4 PM, Google was still under 280 and was not able to sell the options since the bid was nil. Since GOOG was under 280, I just let the options expire.
But since GOOG moved to 280.30 a little later after the close, my options were automatically exercised by the Options clearing authority. I had just a balance of over $800.00 in my account
On Monday, IB liquidated GOOG at the open for a net loss of around $10,000. Now IB wants me to deposit $9200.00 in my account to settle the negative balance.
I assumed that since IRA's are cash accounts, I would never have to deal with a margin call. But now I am in serious trouble. Lastly, I cannot contribute $9000.00 to an IRA in any given year. It is well past the maximum allowed.
Please advise ...
thanks
Since IB traded your account, let them pick up the tab.
|
| |
|
Edit/Delete • Quote • Complain |
| Receive
an email whenever a new post is added to this thread by subscribing
to it. |
|
|
|
|
