my response to suggest that people do their homework was a worthy reminder. what does your remark say about your character? the answer is nothing good.
Is naked option writing really that bad?
- Thread starter Marco.911
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my response to suggest that people do their homework was a worthy reminder. what does your remark say about your character? the answer is nothing good.
who are you referring to?
my response was to suggest that people do their homework was a worthy reminder. what does your remark say about your character? the answer is nothing good.
LOL. Were you on the yahoo option BBs circa 2007 when it was a circus full of a monkey ???
Minimum margin maintenance requirement is just that... money to protect the broker from the speculator.
Most likely a federal restriction - not brokers.
IB will take the money from a non-IRA account - I assume other brokers would do the same. The thread below is about an IRA account $9,200 in the red due to a GOOG call option trade and IB took the money from his non-IRA account.
https://www.elitetrader.com/et/threads/margin-call-on-an-ib-ira-account-need-suggestions.51251/
Broker's discretion, I believe. I don't think there is a regulation prohibiting put writing in IRA.
Likely made it an "illegal contribution" to the IRA then. In addition, by the broker having to settle up on the trade before collecting from the customer, the customer has used "margin" in his IRA. That is prohibited. Therefore, the tax deferral is forfeit with income tax due on 100% of the IRA value.
Something like this, I believe, is why Fidelity doesn't allow naked put writing in IRA.
what was the final outcome? did the customer receive the $9200 back? what lessons are to be learned.?