SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Option Spreads, Credit my Debit
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RoseCampion who wrote (1147)1/11/2000 12:37:00 PM
From: KFE  Read Replies (1) of 2317
 
Rose,

To me, the most interesting thing about the Reg T ammendment is the "additional transactions permitted in cash accounts"...at first glance, it looks like they're finally allowing spreads in IRAs! On second glance, though, they are limiting this to hedged positions using European-style options only...which I didn't think (other than some of the index options?) were even available in our standard markets.

These rules will allow (not require your broker) to let you do cash settled European style options in a cash or IRA account. This would include almost all index options except the OEX. They also have to expire at the same time so no calendar or diagonal spreads. I think that this makes sense because this solves the problem that we previously discussed about assignment causing an overnight loan which is a no-no in an IRA.

Are we going to have a whole new series of options available with no early exercise just to use in IRAs?

I doubt it.

Regards,

Ken

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News