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To: Sundar Rajan who wrote (26517)10/21/1997 8:37:00 PM
From: Ira Player  Read Replies (1) | Respond to of 58727
 
Unless the rules have changed, the only legal IRA use of options is the writing of covered calls. Any other use is treated as use of leverage, not allowed by the IRS.

You risk invalidating the IRA, with all the tax and penalty issues that entails.

Ira



To: Sundar Rajan who wrote (26517)10/21/1997 8:57:00 PM
From: C.N.S.  Read Replies (1) | Respond to of 58727
 
Off topic Sundar,

Does Ameritrade allow you to write naked puts ? If yes, do you know their margin/equity requirements ?

TIA

Shivu