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Strategies & Market Trends : Gersh's Option trades -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (32)	7/30/2004 4:48:29 PM
From: kaka	Respond to of 652

Allen, I was similarly wondering the same with a previous post. I use Ameritrade for both my margin and IRA accounts. They'll allow me to lose all my IRA money with a stock purchase, but not allow a cash secured put sell.....heck...their customer service wasn;t even able to define what a cash secured put is!! They said it was too risky !!! Following was taken from the optionsexpress web site: Q: Do you offer IRAs? A: Yes. optionsXpress gives you the ability to trade options, stocks, indexes, bonds and mutual funds in your Individual Retirement Account, depending on your suitability. You may choose either a Traditional, Roth, SEP or Educational IRA, and we offer the convenience of transferring your current IRA or rolling your 401k into an optionsXpress IRA. (Click here to open an account). Q: Do you allow options trading in your IRAs? A: Yes, we allow prudent trading of options in IRAs based on your individual suitability. Trading in IRAs includes call buying, put buying, cash-secured put writing, spreads, and covered calls. Unsecured (naked) puts and naked call transactions are not permitted in IRAs.

To: Allen Furlan who wrote (32)	7/31/2004 8:54:02 AM
From: Gersh Avery	Respond to of 652

>All of the adjustments just increase your costs and the market may not cooperate.< Market fluctuations allow my "brackets" to tighten faster. OK note this .. I'm running two different patterns at the same time here. One is the collapsing bracket. The other is the sell of a straddle. The straddle becomes disastrous if the market moves outside of a range. The collapsing bracket has to much overhead by itself. The two complement each other. The collapsing bracket is set with a width of 8 contracts. The first straddle is set at a width of 4. The purpose of the center straddle is to partially fund the collapsing bracket. Once the collapsing bracket has contracted enough a final straddle 8 wide will be sold in the center. The final sell should require no additional covering cash. I've got to run it for a while to see how it goes. Your question about OptionXpress and debt covered by cash. Yes they do require the cover. Actually it's required to be covered by regulation.