In an IRA/Roth IRA what options can and can not be traded??

Discussion in 'Options' started by Cabin111, Jun 13, 2020.

  1. Cabin111

    Cabin111

    Is each broker different on this issue?? I don't believe any broker can offer margins on options or even stocks. How "naked" can you be?? Have the rules changed over the years? Thanks in advance...Cabin

    PS I may has asked this a few years ago...The mind goes as you get older.
     
  2. ajacobson

    ajacobson

    The full gamut from just covered-writes at some all the way to writing naked calls at Tasty. A lot depends on having or manufacturing a friendly trustee.
    Cash secured will always be an issue.
     
    ET180 and Cabin111 like this.
  3. Please excuse my laziness, but an any idea if Tasty or the like allow shorting stocks?
     
  4. ajacobson

    ajacobson

    I know you can do the option synthetic so they must have located a trustee. This when everybody here becomes a security's attorney.
     
    Last edited: Jun 13, 2020
    jtrader33 likes this.
  5. Tasty allows shorting in non tax-deferred accounts. If you are short calls in a tax-deferred account and they exercise you will end up having a short position but Tasty will require you to close that position within 1 day or they will close it out for you.

    I have had an early assignment of short calls in a tax-deferred account so I have experienced this. Tasty is excellent at communicating these things via email so it is easy to manage.

    I think this is what you were looking for.
     
    Last edited: Jun 15, 2020
    jtrader33 likes this.
  6. ironchef

    ironchef

    Wells Trade won't allow any and Schwab level 2 (naked not allow but spreads OK).