IB IRA Account

Quote from Opra:

So you cannot do a spread really with American style options, and most stock options are American.
More...

Ditto for European-style options, such as SPX. I am in the process of moving my IRA accounts from IB to ToS.
 
Quote from wafaul:

Yes,they are cash secured,but they pay no interest on the cash,I guess what I mean is the cash is restricted,that is you cannot put it into an an interest bearing instrument of any type.
So in this case the synthetic equivalent (covered call) is a better use of funds,I think.
Maybe funds are not restricted on long option positions,I very rarely go long so I am not sure.
Bol,Waf
More...
Waf,

So they do pay interest on the cash, right?

I know OE does not let the money reside in their sweep account, but they still pay some minimal interest on the cash securing a put. However, I assume IB is better in that regard because I think they pay their normal good rates of about 4% even for the cash securing a put, correct?

Don
 
Don,
Yes they pay interest on the cash,I don't see 4% anywhere but it looks close by the amount of interest paid.I keep pretty much fully invested but if I feel a little skittish I put funds into quality preferreds for a while,
Waf
 
You must log in or register to reply here.
Back
Top