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Don, Schwab's IRA policy is set forth at: http://www.schwabat.com/Options_Trading/IRA.aspx ---------------------- There it says, "Currently, we allow approved clients to write covered calls and engage in long calls and puts in select IRAs. " Perhaps they have not yet updated their...

Thanks Richard. Actually, Schwab is a good broker, yet they "currently" (their choice of words) don't allow uncovered Put writing inside their IRAs. Schwab has made a decision at the executive level to actively pursue a big slice of the growing option trader market. My thinking is that...

Rearden Metal, you're being kind to me. Actually, in this example, 100% of my entire $6.91 investment is at risk, should AGIX go to zero. Yes, I have studied the company and its financial statements, especially the Form 10K released on March 8th. I have made a considered decision to...

Richard, I'm not sure why you are quoting me. I said a long time ago that a covered call write was the synthetic equivalent of an uncovered put write. I wasn't comparing the two alternatives. Since I first joined the ET forums back in January people here have been jumping all over me at...

Nanook, you're probably right that naked call writing is not allowed in an IRA account. However, there is an easy and cheap way to get around this. Simply throw your broker a bone and purchase a cheap (a dime or so) Out of the Money Call, thus creating a credit spread. More and more brokers...

A529612, actually I can name several US brokers who permit credit spreads in an IRA, e.g. Schwab, Optionetics, TradeKing. These are the three I know for sure permit it. No doubt there are numerous others. Now, please don't mix "margin" with option requirement cash holdback. Bob

What is a prop group?

Smiling, that's how I was thinking a few years ago on ANLY before I took my lumps, when I bought in at about $19. Bob

I had the exact same thought. In my IRA account a few days ago I tried to do this synthetically with a covered call write with the April $5. I put it in as a combo order and didn't get a fill. I refused to budge on my price and moved on without looking at it any further. I did look...

Nanook, thanks for the response; however, I'm not big on names. One of the points I was trying to make in that long-winded post above is that the LEAP long call is a throw in and not a significant part of my thinking or planning. In this strategy I trade in blocks (contract size) usually 2...

When I first came on to these boards, I felt I was a pretty good options trader. After my first few postings, Ursa and a few others knocked me around pretty good. I reacted with the normal indignation and faught back. OK, that's background for what I'm leading up to now. For years my...

Simon, that 1% you speak of...what period of time are you thinking about? Bob

Donahuedc, thank you for your posting. You're absolutely correct, Nikko is right in saying this is a trade with higher risk one normally encounters in a covered call write. Matter of fact, I can't remember seeing such a high IV, and as I said in an earlier posting, I've looked at a lot of...

Nikko, if there is an unfavorable FDA decision and IV drops like a rock (the one thing you and I both agree on), if I am so inclined, I will surely be able to buy back those 2 $12.50 April Calls for 5 cents, or about $15 including commissions. Anyway, I will share here what I am doing as...

Nikko, in all due respect, I wasn't painting any kind of story. I was merely laying my trade out with actual numbers and dates and attempting to lay out where the trade will be whatever happens. The main foundation of my posting is the net debit of $6.91. Everything else is beyond my...

Ok, let me give real numbers of the actual trade I presently have on. All dates and amounts are actual and the prices are NET of commission. Date of Transaction: Feb 22, 2007 Purchased 200 shares of AGIX: Price $11.59 Sold to Open: 2 AGIX Apr 12.50C: Net Received: $4.68. Net Debit: $...

Rallymode, yes I realize that. I've been through numerous of these FDA anticipations. I'm of the opinion that there is an FDA announcement, either favorable or unfavorable, that the IV will drop by at least 50%, thus creating a very nice vega profit. Of course if the FDA announcement is...

IV Trader, thanks for the caution. I don't have a big position here. I was attracted to this, as you can appreciate, by the fact that the March and April calls have an IV in excess of 300. Obviously, with numbers like that this is an explosive situation. Some more specifics regarding my...

Ursa, actually tax season is at its high point. In the US, individual tax returns are due April 15 and corporate returns are due March 15. Even though extensions are available, generally for a period of 6 months, there are a lot of calculations necessary, even where an extension is...

Hi Ursa...great hearing from you again. I hope all is going well. I am very appreciative that both you and Michael took the time to analyze the numbers I put up. Actually, consistent with what Michael said, the end of the session bids did come closer and now are only 9 cents apart...