Hi, I am new here, so forgive me if I have posted this in the wrong forum. I have an IRA (therefore a cash account, no margin) account with ETrade, and I recently purchased a debit spread. The stock went up as I hoped it would, and the spread ended in the money. The problem is that after the two legs of the spread were assigned and exercised, ETrade has reduced my trading power to zero. They are saying that the money I got from the spread finishing in the money (and making me money) can't be released until the underlying stock trades settle on the Tuesday following the Friday on which the options expired in the money. Not only do I not have any money from the spread itself, I don't have access to any of the cash I had in the account before the spread finished in the money. Is this normal? Do others with IRA's put up with the same problem every time a debit spread ends in the money? How do you get around it? Sell the spread before expiration? I don't have the same problem with credit spreads. Even when they end in the money, my account gets debited for my loss, but the rest of my money is not locked up. I feel that Etrade is doing something wrong, but I can't find any resources online about how a spread is supposed to be settled in a cash account. If you can let me know your experiences and/or point me to some definitive resources that can shed light on what is supposed to happen, I would appreciate it. Thank you.