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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Tom K. who wrote (10711)	5/10/1999 11:13:00 PM
From: Jon Tara	Read Replies (2) \| Respond to of 14162

Actually, no, an options account is not by definition a margin account. You can buy calls and puts, or write covered calls, without a margin account. However, a margin account is needed for spreads or naked writing. It would appear, then, that there must not be a stautory prohibition against having a margin account for an IRA. Perhaps this is just a matter of interpretation, with the vast majority of brokers interpreting that in order to stay within the rules they should not offer margin accounts for IRAs.