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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Tito L. Nisperos Jr. who wrote (39005)10/31/2000 1:47:40 PM
From: mitch-c  Read Replies (2) | Respond to of 70976
 
Wow ... I lit a firestorm here!

What I'm gathering is that:
a) the IRS rules are vague on the subject (although I recall a section discussing "intrinsic value" in investments);
b) many firms "protect us from ourselves" by not allowing derivative trading in IRA's;
c) with a sympathetic broker - one willing to assume the risk of a lawsuit for allowing higher risk investments in an IRA - it is possible (and legal) to combine the returns available from LEAPS with the tax advantages of an IRA.

Fair summary? (I'm *really* glad I asked this ...)

- Mitch



To: Tito L. Nisperos Jr. who wrote (39005)10/31/2000 6:01:56 PM
From: Gottfried  Read Replies (2) | Respond to of 70976
 
Tito, >, if you select "Income" as Objective --- you are allowed to Write only Covered calls; but if you select "Speculation" as objective --- you will be considered for approval for most of the Options capabilites including Index options ans Spreads.<

Thanks for the hint. I really have to send my form to Schwab now. :)

Gottfried


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