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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.27-0.2%Nov 21 4:00 PM EST
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To: TobagoJack who wrote (162528)9/12/2020 10:57:53 PM
From: stuffbug  Read Replies (1) of 217981
 
<< can you deal in options in the account if it is tax-advantaged? >>

Yes, but no margin. Therefore a short put must be covered by cash.
With zero commission trades, an investor can short an in the money put for the cost of a contract (less than $1),
effectively buying the stock under the market price,
but with upside capped at the strike price.

However, need to consider dividends and option liquidity for low priced stocks.
Best way to implement this strategy would be to play a near term contract and then roll over every month or two, taking advantage of the severe time decay as expiration date approaches.
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