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To: Sorin A. David who wrote (4714)11/10/1997 4:13:00 PM
From: Jon Tara  Read Replies (1) | Respond to of 9124
 
[Off topic] There's a bit of confusion about options terminology here.

"Naked" options is a term generally applied to naked selling of options - that is, selling options when you do not hold an underlying long (or short, for puts) position in the stock.

Buying options without having an underlying stock position is just that - buying options. I've never seen the word "naked" applied to this. You might also refer to this as buying "uncovered" options.

Most IRA accounts only permit selling of covered options, and no other kind of option activity. Not sure if this is a legal requirement or a judgement call on the part of the broker.



To: Sorin A. David who wrote (4714)11/10/1997 4:47:00 PM
From: donss  Read Replies (1) | Respond to of 9124
 
Are you sure? What is your source?
I have an IRA account with Fidelity and according to Fidelity customer service and the options agreement I can sell covered calls and buy puts, calls. So far I have only sold covered calls. However, I called Fidelity on 3 different occasions and was told I could buy puts and calls.
Thanks for any info,
Don


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