Short put = covered call in theory but in trading ...

Discussion in 'Options' started by nravo, Oct 23, 2007.

  1. nravo


    In case everyone is confused I am looking for a short put in an IRA and get the same margin as in a non-IRA. The risk characteristics of a covered call are are the same, I know. BUt the margin is not, and I would rather free up the case. I can only think of a naked put on single stock futures that would be an allowed naked put on a stock in an IRA. But I don't think such an animal exists.
    #11     Oct 24, 2007
  2. ssmegner


    You are not going to get margin in an IRA. You cannot cover a margin call in an IRA because you may be at your annual contribution limits. A cash covered short put is about as close as you are going to get. I do mostly options in my one of my IRA's and I will substitue a vertical for a full naked position. The risk is known and is allowed in my IRA.
    #12     Oct 24, 2007
  3. nravo


    I short naked options in my IRA -- using futures as the underlying.
    #13     Oct 24, 2007
  4. Those would be covered options, then.

    You can never have more money at risk in your IRA than you have cash in your account. You can't write naked, and you can't write unlimited-loss positions (e.g. naked calls).

    If you want to write naked, do it in your taxable account.
    #14     Oct 24, 2007
  5. nravo


    you can short naked options in in IRA -- options on futures. I write naked calls and puts against ES, for example, all the time in my IRA.
    #15     Oct 24, 2007
  6. Bless


    Does anyone here know which broker has account for trading:
    FX spot and Future in one account?

    Please let me know the website.

    Thanks ahead.
    #16     Oct 24, 2007
  7. Thinkorswim has futures and spot fx but only one Futures FX.
    Interactivebrokers has both futures and spot fx.
    #17     Oct 24, 2007
  8. GTS


    False. You can trade futures in an IRA and if the futures position moves suddenly against you you can easily end up at less then zero because you only have to have enough cash in the IRA to meet margin requirements, not the full contract value.
    #18     Oct 24, 2007