options account with few restrictions..

Discussion in 'Options' started by GGSAE, Nov 13, 2006.

  1. If you have a naked short put in an IRA you HAVE to have it fully cash secured...ie cash to cover. If its a put spread then I can't see you getting hurt in the above situation as the long put will at least be worth something. Now if you were assigned in a spread situation and the stock actually went UP over the weekend and your long put then is worthless that would be problematic. I make it a rule as soon as I'm assigned the short put I sell the long, but your broker should be able to give you several alternatives.

    I don't believe you can add to an IRA other than a roll over but thats a great question. I'm going to a seminar on options in your IRA next week and will ask that if I have a chance. I'm sure the answer is to check with your tax person :)
     
    #21     Nov 23, 2006