How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: NateC who wrote (11726)	10/23/1999 5:36:00 PM
From: Herm	Read Replies (1) of 14162

According to the Benjamin and Jerold brokerage literture which you can download at stockoptions.com, they claim the following is allowed in their IRAs. "In an IRA, both calls and puts on stock and index options can be purchased. Because risk is quantified, spreads, such as time spread, debit or credit spreads are also permitted. Selling puts against cash is also allowed but a put sale must be 100% cash collaterlized (secured). This means if 10 puts are sold on Disney @ 30, $30,000 in cash must be ready in the account waiting to buy Disney if it declines and 1,000 shares are assigned. As you can see, selling puts against cash is IRA eligible but very capital intensive." NO MARGIN IN IRAs and the house min. is $15,000! Now, you have it!

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