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To: engineer who wrote (60847)	1/7/2000 10:03:00 PM
From: Ritch	Read Replies (1) \| Respond to of 152472

engineer - The SEC won't allow you to trade options in your IRA, as I understand it. This is not true. My IRA is allowed to sell covered calls, and also buy puts and calls. Many brokers do not allow it, but that is just their own internal rules. The only things that you are not allowed to do in an IRA is trade Uncovered (naked) options. The reason for this is that if the option gets exercised, you could need margin to cover and margin is not allowed in an IRA. When I first applied for options on my IRA, they only approved me for covered call writing. I called them and they said that is all they allowed. I told them I wanted to buy calls and would move my account elsewhere if they would not allow it. The next day they approved me for buying puts and calls. I just bought my first contracts in my IRA on Wednesday (what great timing!). :-) Ritch

To: engineer who wrote (60847)	1/7/2000 10:53:00 PM
From: waverider	Respond to of 152472

e...the IRA accounts that I have are rollover IRA's that came from 403b accounts we closed out after leaving the teaching profession. Fidelity lets us trade short and long term options without a hitch. However, in our SEP and ROTH IRAs all we can do is straight equity trading. Rick

To: engineer who wrote (60847)	1/8/2000 12:03:00 AM
From: DownSouth	Respond to of 152472

Engineer, as I understand it, it is at the discrection of your custodian. IRS does not forbid. The Schwab guys tried that the "you are not allowed to trade options in an IRA" line with me. I said, "whose rule is that, yours or the gov't". Their quick response was, "Well, we take the conservative approach. That is our rule, not the gov't." (Schwab does permit married and covered calls.) FIDO allows, according to FIDO and folks here in exactly my situation.

To: engineer who wrote (60847)	1/8/2000 2:45:00 AM
From: cortezc	Respond to of 152472

You can trade options in an IRA; it is strictly at the discretion of the custodian. Dreyfus allows option trading in IRA's for one, there are quite a few other brokers that also allow option trading, but many do not. I have never traded options with a margin account. Seems to me that is not too smart and is unnecessary. Good Luck

To: engineer who wrote (60847)	1/8/2000 2:50:00 PM
From: James C. Mc Gowan	Respond to of 152472

RE: options in retirement accounts; here's a puzzler for you; I recently opened a Roth IRA at Schwab, were I have also had a Keough for many years. I told the local office mgr. I had years experience in trading options and wanted to do so in my Roth; was given approval. OTOH, in my Keough, where I have been able to buy puts and sell calls, ONLY against a common position, I was told I cannot buy call options, nor call leap options. Go figure. After great frustration with Schwab, including being charged margin interest in my Keough account(totally non-marginable retirement account) I went to Brown office in SF, took thier little test, and am rolling my Q fattened Keough to Brown, where I will be able to buy options to my hearts content, as long as they are not margined. P.S.: Watley is great for the quotes feed if you get DSL service. Regards, James

To: engineer who wrote (60847)	1/8/2000 3:53:00 PM
From: Uncle Frank	Read Replies (3) \| Respond to of 152472

>> The reason you can't trade options in your IRA is that it is ALWAYS coupled with a margin account and you cannot have a margin account in your IRA I might get penalized for piling on, but I've been trading options in my Fidelity Traditional IRA for years. The only options plays not allowed are writing naked calls or writing puts. I just opened a Roth IRA for my son, and the same options trading privileges were accorded him. You are 100% correct in your assertion that the Feds don't allow the use of margin in IRAs, but buying calls, buying puts, or selling covered calls does not entail the use of margin. I'd suggest you contact Fidelity for confirmation. Unq