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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: RoseCampion who wrote (1147)	1/10/2000 11:31:00 AM
From: OX	Read Replies (1) \| Respond to of 2317

>>>50+ wow, i didn't' realize we were that active... no wonder we were on the hot list, given the way the hotlist is calculated. >>>Are we going to have a whole new series of options available with no early exercise just to use in IRAs? Ken probably has the real insight on this, but I would think the new changes won't encourage any new options just for IRA's. I doubt any exchange would want to introduce euro-style equity options. that would be too confusing. (the overwhelming majority of index options are euro-style... i think only about 3 are american-style)

To: RoseCampion who wrote (1147)	1/11/2000 12:37:00 PM
From: KFE	Read Replies (1) \| Respond to of 2317

Rose, To me, the most interesting thing about the Reg T ammendment is the "additional transactions permitted in cash accounts"...at first glance, it looks like they're finally allowing spreads in IRAs! On second glance, though, they are limiting this to hedged positions using European-style options only...which I didn't think (other than some of the index options?) were even available in our standard markets. These rules will allow (not require your broker) to let you do cash settled European style options in a cash or IRA account. This would include almost all index options except the OEX. They also have to expire at the same time so no calendar or diagonal spreads. I think that this makes sense because this solves the problem that we previously discussed about assignment causing an overnight loan which is a no-no in an IRA. Are we going to have a whole new series of options available with no early exercise just to use in IRAs? I doubt it. Regards, Ken