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Politics : Formerly About Advanced Micro Devices
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To: Joe NYC who wrote (106841)4/20/2000 6:37:00 AM
From: Elmer   of 1574210
 
Re: "Which broker lets you write puts in your IRA account? What margin requirements do they have? Cash in the account, stocks?"

Charles Schwab. They require 100% cash backed so you can meet your obligation should an assignment take place. The cash remains locked for the duration of the option, unless you want to use the cash to buy back the option should the price drop. You continue to earn interest on the cash balance. The law does not allow margin in an IRA (unless you want to deal with Wade Cook who claims it can be done).

When I first asked Schwab for this authorization they told me it wasn't allowed by law. I asked again and the said it was rarely given. I told them I was going to move my account to another broker if they didn't allow me to do it and magically I was given approval <ggg>.

EP
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