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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 174.54-1.2%3:59 PM EST
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To: engineer who wrote (60847)1/7/2000 10:03:00 PM
From: Ritch  Read Replies (1) of 152472
 
engineer -

The SEC won't allow you to trade options in your IRA, as I understand it.

This is not true. My IRA is allowed to sell covered calls, and also buy puts and calls. Many brokers do not allow it, but that is just their own internal rules.

The only things that you are not allowed to do in an IRA is trade Uncovered (naked) options. The reason for this is that if the option gets exercised, you could need margin to cover and margin is not allowed in an IRA.

When I first applied for options on my IRA, they only approved me for covered call writing. I called them and they said that is all they allowed. I told them I wanted to buy calls and would move my account elsewhere if they would not allow it. The next day they approved me for buying puts and calls. I just bought my first contracts in my IRA on Wednesday (what great timing!). :-)

Ritch
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