Is it possible to sell uncovered options in IRA?

Discussion in 'Options' started by marshg, Nov 24, 2009.

  1. marshg


    does anyone know of a brokerage firm that will allow you to sell uncovered puts and calls in an IRA? If so, pls let me know.
  2. 1) Naked calls, no. A firm won't tolerate that type of potential, open-ended risk.
    2) Naked puts, yes. Your account will be margined at the strike price minus premium to protect the firm from a total collapse of the underlying to zero. Covered-call writing would be easier because you're already "long" the stock instead as an equivalent synthetic substitute for the short-put. I don't endorse any firms. Look at the "bigger" ones first. :cool:
  3. marshg


    thanks Nazzdeck [clever name!]; uncovered puts is preferred actually. well, if anyone knows of names firms, I'd appreciate it, as Think or Swim didn't let me sell uncovered [It's been a few years since I transferred to Ameritrade--and I don't believe they allow it either]. So would love some names of people that have actually done it in their brokerage acct.
  4. sonoma


    If you buy nickel long wingstrikes for your short puts and calls, you've set yourself up to trade naked short puts and calls. I'm not promoting this type of trading, but simply pointing out how you can accomplish your goal inside an IRA.
  5. marshg


    thanks for tips; still happy to hear if there are others. The help is much appreciated!