Nate,
Did you speak to one of Ameritrade's Option brokers? I haven't done one in quite a while, but I seem to recall they would do it. You do have to call in, so the stock trade will cost more ($15 versus $8, I think). Dan has suggested simultaneous limit orders, but it's not the same as a buy-write; there is a bit of room for you to be burned if the stock and/or option is behaving in a volatile manner. You have to own the stock before you can write the options on it, unless you're approved for naked options. By the time you get confirmation of the stock buy (or naked option sell), the stock and option may have moved away from the limit you wanted on your option (or stock), so that technique won't necessarily work like a buy-write. It should work if your limits are pretty close to the price when you enter them (i.e. close to market orders, so they're likely to execute quickly). The point of the buy-write is that you're assured of a specified spread because of simultaneous execution, and unfortunately, there's no way for those of us not on the floor to do that.
I'd pursue the buy-write, though I don't know of any broker doing it online.
That would be a good suggestion, wouldn't it? Why don't we all email our brokers and ask them to offer buy-writes online? There may be technical reasons (related to the above) that make this unfeasible, but it can't hurt to ask and learn.
Cheers, Tuck |
