IRA puts

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graeco

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I need a list of brokers that allow you to buy puts and calls in your IRA.I was with Dreyfus but Brown and Co seem to have totally screwed up their take over of Dreyfus.What use is an account if you cannot access it?Can anyone suggest an alternative?
 
Interactive Brokers allows buying of puts and calls in an IRA and the commission fee is ultra low.

I switched from Dreyfus when the announcement was made about Brown taking over the accounts.
 
I just got an email from Brian at MBT saying that they allow options in an IRA.So if Brown and Co dont let me in soon,that is probably where I will go.I get the impression that IB dont want you unless you are going to be rather active.
 
I just noticed Brown and Co are owned by JPM.What if the rumours about JPM are true,that they are in deep doo doo with their gold derivatives?If JPM went belly up,what would happen to customer accounts at Brown and Co?
 
Fidelity allows option trading in an IRA (Roth or usual flavors), only up to level 2, since they don't allow margin accounts within IRAs.

You have to go through the usual paperwork, of course.

And, you have to be alert to NEVER let an in-the-money position go to expiration and get assigned unless you are sitting on a huge pool of cash...otherwise the margin dept. will call you up to discuss the issue.

Hope this helps!
 
re my previous post:

level 2 means no put-writing, no selling uncovered calls (both of which overtly involve margin activity, which is incompatible with the restrictions on funding IRAs)

and, no debit or credit spreads (at least at Fidelity). Other brokers may handle spreads differently...inquire specifically if this is of interest to you.

Remember to be ruthless in extracting profits, because situations change faster than New England weather. And, at level 2, all positions except covered calls you've sold are subject to time decay...

Good luck!
 
Originally posted by graeco
I need a list of brokers that allow you to buy puts and calls in your IRA.I was with Dreyfus but Brown and Co seem to have totally screwed up their take over of Dreyfus.What use is an account if you cannot access it?Can anyone suggest an alternative?
More...

I'm also a refugee from Dreyfus (sweet margin deal that we had there didn't we?) :). I went to IB. You can do puts and calls in your IRA accounts there but due to their cash accounts policy, you have to wait until settlement day for availability of your funds after closing a position: therefore it's 3 days for stocks.

You need to generate 30 bucks a month in commission to avoid a $10 monthly data fee. However you can combine/link several accounts for the purpose of commissions. So if you generate the $30 on your margin account, you would not get dinged for the data fee on your IRA account. If you trade your IRA accnt a lot and with stocks, the 3 days rule has to be looked at carefully: it could cripple your style and timing. If you do lots of options ($1flat/contract) it's something to look at.

I was with Brown many many moons ago, when orders had to be entered via a human being: it's a serious outfit. Don't discount them too fast (no pun intended). However, they've been sliding a bit as I understand; many web site problems etc... Superb customer service though. All very professional, and they know their stuff.

Hope this helps,
Elvis
 
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