I have an IRA with over $1mm in assets and am currently using Interactive Brokers. I love IB but unfortunately at the beginning of this year, IB stopped allowing trading of certain stocks (LP's like USO) in IRA's so I'm looking for a new broker for my IRA. They should have a reliable API so I can electronically submit and cancel orders for option call spreads during the trading day. Would prefer a python API but other programming languages are fine also. I'm looking to trade vertical call spreads, i.e two call options with the same underlying and expiry but different strikes. IB actually has good margining for these in an IRA, with the margin being the difference in the strike and the commissions are approx $1 per contract. I am looking for something similar.
Looking for broker that allows trading vertical call spreads in IRA
- Thread starter yeti9
- Start date
What is MLP?
I don't want to own the MLP itself, just trade call spreads on it. I believe owning options as opposed to the underlying will not cause taxable income.
Most of the brokers support MLPs in IRA, there are no rules against it. IB is too lazy to deal with paperwork around it thats why they banned them, I had that issue as well. Try ameritrade it should work for you. Vertical spreads is also normally not a problem with most of the brokers, Good API is a pain to find.
There is no need to circumvent anything as there is no prohibition. As long as broker allows vertical spreads in IRA and a lot of them do, you are good to go. I do this everyday including my IRA account.