SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Howard R. Hansen who wrote (2071)6/10/2001 10:45:53 PM
From: Mathemagician  Read Replies (2) | Respond to of 2241
 
No broker will let you write naked puts in an IRA account. To write naked puts you must have a margin account. However, you can not have a margin account in an IRA account because an IRA account can not borrow money. There are some brokers that will let you write covered puts in an IRA account.

Why not maintain the required equity in cash? I have yet to hear a good reason why the requirement that an account in which naked puts are written be a margin account.

M



To: Howard R. Hansen who wrote (2071)6/11/2001 12:00:30 AM
From: Joe Waynick  Read Replies (1) | Respond to of 2241
 
Thank you Howard for your response. Several others have told me the same thing. However, I still think it’s a strange rule since naked puts are equivalent to covered calls. The fact that it’s done in a margin account is a function of the brokers’ policy, and can easily be changed if desired. I think it's more likely the broker wants to encourage the use of margin so they can charge interest.

Sorry didn't mean to ramble. Thanks again.

Joe


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News