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Strategies & Market Trends : Advanced Option Strategies
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To: Joe Waynick who wrote (340)6/11/2001 2:35:41 AM
From: RoseCampion  Read Replies (1) of 355
 
As usual, the IRS in its infinite wisdom wants to control how I manage my personal finances.

The IRS has nothing to do with it, and there are no regulations like the one you're assuming exist that prohibit the writing of naked puts. Rather, by law (and IMHO, common sense), retirement assets are not marginable; hence most brokerages take the easy route out and say that any activity which would require margin (eg, selling short, writing naked options) cannot take place in an IRA. End of story; the government's not involved in the decision at all.

From time to time I've heard of brokerages that allow naked puts in retirement accounts if they're 100% cash secured - though I don't recall their names right now. Their existence proves it's your broker making the rules, not the Mean Ol' Guvermint.

-Rose-
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