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Strategies & Market Trends : Roth IRA ideas

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To: Sundar Rajan who wrote (89)4/22/1998 1:48:00 PM
From: Bill J. Landis  Read Replies (1) of 388
 
Writing Options in a (Roth) IRA.

Okay, I'm planning to open a Roth IRA soon and having been trying to decide how to best make use of it and it's tax advantages.

I've also decided I'm interested in writing covered calls. The thought just occurred to me, that if I were to hold the stock itself in a normal cash/margin account with the broker (starting out with Waterhouse), but write the calls on the stock in the IRA (is that even possible, writing calls in an IRA?), that there is a decent and it seems guaranteed return in the IRA with no risk of loss. If the stock is sold, it is in the cash/margin account.

Anyone know if this is possible? For some reason it just sounds too good to be true. Is it that IRAs are limited to just buying options and cannot write them?

Thanks for any thoughts.

--Bill Landis ae954@tcnet.org
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