IRA recommendations

Discussion in 'Retail Brokers' started by rtr1129, Jul 31, 2011.

  1. rtr1129


    I am rolling over about $5k from a 401k to an IRA. I'd like to have the ability to try some options strategies. Probably simple covered calls at first, but I'd at least like the option to do spreads. Any recommendations of brokers I should look into that fit this?
  2. LEAPup


  3. rmorse

    rmorse Sponsor

    Sorry, but I don't think $5K is enough money for even simple option strategies. If you're doing 1 lots on low priced stocks, your return will be killed by commissions at retail rates.
  4. rtr1129


    Thank you for this advice. What would you suggest as a realistic minimum to start with options strategies? Will the commissions on basic stocks also be prohibitive at this level?

    Is it also unrealistic to try selling calls covered by another call or LEAP with this amount? I had thought this might open up my options more to higher priced stocks.