IB IRA's and Options

IB is now allowing covered calls in IRA's. Is it possible for them to offer buying puts and calls? My friend is allowed to do just that in his IRA at fidelity. ...could this be the solution to the settlement problems stock trades in IRA's?

The possibility to have leverage, go short, and trade with out worry of T+3...comments please

 

They actually offer that now. (buying puts and calls)

I have done a couple small trades just to see how it works, and it's great from my limited experience.

You need to upgrade your account if you have not done so already. It seemed like it took a day to process.

I love IB. They seem very progressive as far as giving their customers every tool they possibly can.

I have looked for years to find a decent broker that could meet all my needs, and now that I have one, regulatory walls are being built in front of me as fast as I can turn directions. (I trade an IRA) There are now some options regulation they are trying to push thruough that you might want to check out. I guess the regulators won't rest until I put my money in mutual funds. (fat chance)

Good luck!

 

I am looking at moving my IRA (and spouse's) from another broker to IB. I've traded there with a small starter account and now feel like they deserve more of my $$$. I haven't heard of a brokerage account allowing shorting (margin account needed) but put and call buying should be the norm...as well as covered calls.

I was just starting to check into that this week. Has anyone moved an IRA from one broker to IB? Then, a more difficult question...My spouse's IRA account must be in her name but I need to trade it and be the "authorized trader" on the account. I'm sure IB allows this but I'm wondering if anyone has done this and if it's a simple process.

Thanks

 

I transferred an IRA from PreferredTrade to IB. At the time, it was awful. They were just getting their IRA's on line and did not have a transfer form availible.

Now they have the form in their account section and it is very simple.

I am not sure about the trading authorization question, but my guess is if the form is there, it will be a piece of cake, if it isn't and you have to do it "manually" be prepared for a lot of headache.

 

Both my wife and I have IRAs with IB and we're very pleased. About the only downside is that we can't buy any OTCBB stock. With the NASDAQ sell off this year, there are some legitimate companies trading on the OTCBB. One of the stocks we're invested in (Exodus Communications) voluntarily delisted from NASDAQ - trading was suspended indefinitely - and moved to the OTCBB while the company works through Chapter 11 restructuring. I was dying to buy the stock last Friday for 5 cents. It was up 80 % today and closed at 9 cents. I was willing to pay extra to execute a trade through a live broker but IB rep told me no.

Any possibility of IB ever allowing OTCBB trades in the future ?

 

Why bother IB with BB trades? First of all, at a price of 5 cents a share you'll be getting reamed on the commisions. I believe Etrade does unlimited shares (check it first) for 19.95, as do some others.

So keep a few thousand or whatever there for BB action.

 

stock777 - you're right. The commissions would have hurt in that case. I guess I was just a little irked at seeing a prime trading opportunity but not being able to take advantage of it.