I have consider this Strategy of trading Short in my margin account and Long in my 401K account. I have found a over valued stock that is up 75% in the last few weeks and seems to have a trading range between $13 to $14.20 that it bounces on those ranges several times a day. The stock has limited shares 5.9M and a low float that has helped it's over value movement. Also, it appears someone is manipulating the stock by buying and selling Large 10K-40K blocks since this stock's P/E isn't good enough to be a $10 value. Any way the Strategy I was thinking about was to Short at the Top of the Range and go Long when it hits the bottom of they range. When I exit I will sell a 8K shares at the top of the Range and it that drops it enough then Cover my Shorts at the lower price if it breaks lower out of the range. I just need to stock to Range while I am accumulating and when I exit my Long positions it help me cover my Short position at a lower price. Also, I have a stop loss on my Long side to limit the down side on the 401K account. I am sure this Strategy has a name. In tax circles it's called " Shorting the Box " but I'm not after the tax since my long side is 401K money. Really don't know if this is a good idea but on paper it looks to limit my loss and if I get out when the stock is still active. Anyone think this is a good game?
With a little help from a broker you could use two accounts to screw the IRS out of taxes. Have one regular futures account and one self-directed futures IRA account at the same firm. At the beginning of the day tell the broker to buy and sell the same number of contracts with the account numbers to be assigned TBD (To Be Determined). Close out the trades late in the day. Assign the losing trade to the IRA account and the winner to the regular account. This way all profits are taxed with the 60/40 split and you avoid the 10% penalty for IRA withdrawls + the higher rate on short term gains. Seems pretty riskless way of converting a IRA to regular money (as long as your broker will go along). If my memory serves me right this is how Hillary's broker helped her make a killing in cattle futures. His firm ate the losing trades and assigned the winners to her.