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Strategies & Market Trends : Advanced Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Joe Waynick who wrote (338)	6/10/2001 5:03:56 PM
From: peter n matzke	Read Replies (2) \| Respond to of 355

Joe, naked puts are not allowed under the current guidelines and would void your IRA from the eligibility rules for tax preferential status. The basic rule to keep in mind is that timed instruments are not suggested for IRA accounts. The only reason why covered calls are allowed, is because the client already owns the position, and selling a covered call against the position in effect would bring the client to a flat position. A naked put seeks to profit if the issue where to go lower in price, hence they are not the same thing.