Is it possible to sell a covered call in a cash account?

[kfir]

Normally you can't sell options if you don't use a margin account.

But is it possible to sell a covered call? since there is no margin in it when the stocks sit right there.

 

[Autodidact]

Normally you can't sell options if you don't use a margin account.

But is it possible to sell a covered call? since there is no margin in it when the stocks sit right there.

In a non margin account it is not allowed.

 

[kfir]

Thanks you were very quick

 

[newwurldmn]

In a non margin account it is not allowed.

This is wrong. You can sell covered calls in a cash account.

 

[kfir]

This is wrong. You can sell covered calls in a cash account.

Is it possible in IB?

 

[newwurldmn]

Is it possible in IB?

I don't know. It should be. It is possible in etrade and was in Schwab and brownco.

Call them and ask them.

 

[xandman]

I think BrownCo was acquired by Etrade in the 90s.

I was a customer.

 

[newwurldmn]

I think BrownCo was acquired by Etrade in the 90s.

I was a customer.

2004-2005. I was a customer too.

 

[xandman]

Just half a decade off. But, I don't think exist anymore. Was nice being grandfathered for that flat $5. However, commissions have dropped since then.

I think some optionshouse guys got $2.95, grandfathered like BrownCo. No direct connects to APEX though. Just webtrading.

 

[ironchef]

Normally you can't sell options if you don't use a margin account.

But is it possible to sell a covered call? since there is no margin in it when the stocks sit right there.

By definition, a covered call means you already own the stocks so all brokerage account should allow whey you apply. If you try to sell naked, most cash account I know won't allow.