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Pastimes : G&K Investing for Curmudgeons -- Ignore unavailable to you. Want to Upgrade?

To: Greg Hull who wrote (14976)	6/13/2001 1:23:03 PM
From: LKO	Read Replies (2) \| Respond to of 22706

You might be interested in this info from the Options for Newbies thread: Message 15936173 For those that actually read that, there is also one fringe condition that caused Fidelity (my IRA custodian) to send me a warning letter about violating some IRS/SEC laws. I am not sure I understood the jargon, but here is my rendition of another case that gets you into trouble doing options in an IRA. I had bought calls which were substantially in the money on expiration day. I did not sell the and they went through an "automatic exercise" where on Saturday (following options expiration) the stock was bought and then sold on Monday morning at open. I did not have cash in the IRA account to really buy that stock so the money was probably "borrowed" from somewhere and not to mention the risk of stock tanking way below strike price on Monday morning (something that never happened, but a theoretical possibility). So, for IRA account option trading, there are more issues to keep in mind. Especially, close those ITM calls at close on expiry by selling them (not automatic exercise).