Is it possible to sell a covered call in a cash account?

Discussion in 'Options' started by kfir, Jun 10, 2015.

  1. xandman

    xandman

    Uncapped losses, it is considered the riskiest. Some brokers won't allow naked calls unless you can qualify for PM.
     
    #11     Jun 10, 2015
  2. Autodidact

    Autodidact

    If you sel a covered call and then you sell the stock, now you are naked and most brokers do not have a way of identifying that so on non margin accounts it should not be allowed.
     
    #12     Jun 10, 2015
  3. hajimow

    hajimow

    you can also sell covered call in cash account in IB but then you cannot sell the stocks before you buy back the calls and if the stock goes up, you might not have enough cash to buy back the calls.
     
    #13     Jun 10, 2015
  4. qxr1011

    qxr1011

    no
     
    #14     Jun 10, 2015
  5. ironchef

    ironchef

    All my cash accounts are non margin and I can do covered calls all day.
     
    #15     Jun 10, 2015
  6. qxr1011

    qxr1011

    ok, then proper answer will be: depending on the trader
     
    #16     Jun 10, 2015
  7. drcha

    drcha

    Yes, you can sell a covered call in an IB cash account
     
    #17     Jun 10, 2015