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

To: mitch-c who wrote (39013)	10/31/2000 2:06:38 PM
From: michael97123	Respond to of 70976

Wow ... I lit a firestorm here! Troublemaker! Just kidding. I would suggest IRS might have some different ideas than the brokers who allow this but it is my understanding they dont get a view of the transactions only the results. But some of what you discuss is simply not prudent in a pure retirement account. But neither is short term trading and many folks use ira's for this because there is no tax until one is old and perhaps in a lower bracket. Whenever i trade in my ira i take losses that i cant use and all the gains are in my taxable account. So if IRS doesnt get you God will.

To: mitch-c who wrote (39013)	10/31/2000 2:18:32 PM
From: Tito L. Nisperos Jr.	Read Replies (1) \| Respond to of 70976

Mitch-c, the Bottom line is that if you Re-Apply to add more Options trading capabilities that are allowed by law on IRAs, you have to answer correctly this "trick" question included in the application form that says something like, "What is your Objective in Options trading?" Is it for "Income" or for "Speculation?" Now, there's no harm to check "Speculation" even though you just wanted to Write Covered Calls --- a strategy that is considered not risky. If you select "Income," of course the broker interprets it that you do not like to Buy to Open then later on to Sell to Close Calls and Puts whether they are LEAPs or not, Equity or Index Options, simple Spreads like buying Calls and Puts simultaneously or not (sorry no writing of Puts or Naked Options)--- all strategies that falls in the category as Risky to one who just wanted some Income while holding the stock for a while. Also, the Broker does not Approve automatically the Options capabilities you like --- you have to apply for them, then he will decide whether you deserve to be approved or not. And if you are denied, the Broker just tell you they "are unable to approve your application this time"; the reason? --- you have to guess for yourself. The reason could be just a matter of selecting "Speculation" over "Income."