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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: jebj who wrote (12406)	2/28/2000 9:54:00 PM
From: Dan Duchardt	Read Replies (2) \| Respond to of 14162

jb, Maybe I am missing something here but why not just open a margin account - problem solved! Two reasons: (1) You cannot use margin in an IRA. I've heard people argue that you can still have an IRA in a margin account, but I've never heard of a broker who will manage a margin account restricted from using margin. That would require a whole new set of accounting rules. I've never seen anything but cash accounts for IRAs. (2) The NASD/NYSE proposal to change margin and account minimums for daytrading prohibits daytrading in margin accounts of less than $25,000. Daytrading is defined in the proposal as selling something the same day you buy it four times in five days, or some other things that might show intent like taking a course in trading. (Currently, if you buy and sell the same day only a couple of times a year you are considered a daytrader.) If the proposal passes, a small margin account will be more restricted than a cash account, assuming one can in fact buy and sell the same day in a cash account. Dan