Squirrel...Robert, don't know if you could answer this question. I asked my CPA...He said it may take him hours to give me an answer. I told him "forget it"...Not worth the cost. Here is the scenario...Could you make this trade (Roth IRA) without the IRS questioning it. Say Boeing is at $211. and you buy 100 shares. You then do a leap...Sell to open the Jan 22 $210. You know this would be a losing trade...But profitable because of the option money. Could you do this in your Roth?? Could it be done in a regular account??
If approved for Option Level 1, and you have enough cash in your account for the net, A buy-write is certainly allowed in both an individual account and an IRA. I’m not sure why you think this is a tax question or why you would certainly lose money.
I could see it in a Roth IRA...Taxes paid. But with a regular IRA or individual account, you knowingly would be losing money on the underlying stock. Does the IRS care??
Good point...If it gets called away. So the IRS does not care about this?? A "no" answer would be fine. You could take this further...Sell a covered call for BA Jan 22 $190. or $180. You have a large long term capital loss to use against your long term capital gains...