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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (5029)	5/8/1999 7:46:00 PM
From: Allan Harris	Respond to of 15132

Is it also against the rules to own a mutual fund that shorts the S and P Index within an IRA account? I have a ProFunds SEP IRA that I have traded into the UltraShortOTC Fund many times. I don't want any guesses, misinformation, answers starting with I think, my brother said, a coworker stated, if you don't know save us the nonsense. But your question asked whether it was against the rules? I don't for sure. I think my brother said that they may let me do it only because I am, The King of France. A

To: MrGreenJeans who wrote (5029)	5/8/1999 10:50:00 PM
From: Mr. BSL	Respond to of 15132

MR GJ, - Mutual funds that short in IRAs - From time to time I have owned RYDEX URSA in an IRA. No problem because the most you can lose is your investment. i.e. NAV goes to zero. This is different from shorting a stock where you can, of course, wipe out your account and then some. Shorting stocks in an IRA, if allowed, would lead to margin calls that could not be filled without an "excess IRA contribution" penalty. Therefore, the only way to short in an IRA is through a mutual fund like URSA or one of the Potomac funds. Dick

To: MrGreenJeans who wrote (5029)	5/9/1999 6:21:00 AM
From: Boca_PETE	Read Replies (1) \| Respond to of 15132

Mr. GJ: If you want to own a fund that shorts the S+P (such as Rydex Ursa) within an IRA Account, that's perfectly legal (up to now, of course - I think (only kidding):-)) P

To: MrGreenJeans who wrote (5029)	5/10/1999 12:43:00 PM
From: Trebor	Read Replies (2) \| Respond to of 15132

Re: Shorting Within an IRA Account -- This can be accomplished by either buying protective puts or selling covered calls, both permissible within an IRA. While this isn't the same as selling short, it amounts to the much same thing -- a bet that a given stock is going to either decline in price or stay roughly where it is over a certain period of time. I've often wondered why Bob B. is loath to discuss these quite conservative strategies. It happened again this weekend when he brushed off a question from a caller who laid out a quite logical strategy for making an almost guaranteed decent return through the use of leaps.