my employers 401k does not allow long calls / puts what choices i have?

[ajacobson]

"I talked to 'em the benefit admins, they won't even allow to roll into IRA while I am working. I dont know lobbying will have an effect. I can definitely ask around, but the organization is huge (200$ billion company), i doubt voice of a one guy and little guy will make any different lol."

They won't let you roll until you leave. Size has nothing to do with it - it's philosophy. There are also states that require new plans to allow hedging - which means your plan guidelines will NEVER be rewritten.

 

[JM35]

Do you work for JPMorgan lol? I worked there for a year and I wasn't even allowed to trade options in my own brokerage account unless they we're over a year long and you always had to be buying, couldn't ever sell.

 

[smallfil]

My employer uses Fidelity and I can't even trade stocks through my "BrokerageLink" 401k.

Fidelity is very strict. I have approval on my trust account to trade options buying, calls and puts, spreads. I ask them to give me approval for my IRA and they will only approve covered calls. I just transfer monies to my trust account and trade options. Of course, the tax advantage is gone since, it is a regular account. Never had the same problem with TD Ameritrade and Scottrade (bought out by TD Ameritrade). Dumb really. You are approved for trading options on one account but, they disapprove the IRA?

 

[ironchef]

I have Roth IRAs at Fidelity and Schwab. I can only do covered calls or puts to buy back stocks, I believe. Federal law I think...I may be wrong, but I feel that is the case.

You can trade options up to level 2 with you Schwab IRA.

 

[Option_Attack]

Yeah you can't withdraw from reg IRA before age 59 1/2 without 10% penalty, plus tax hit. I would do the Roth IRA if I could do it again. No taxes. The contribution and conversion rules have gotten better in the last few years. I would convert mine, but you have to wait 5 years to withdraw any earnings after conversion. You can take out contributions, tho. I'm 61 so I might need it at any time!

I might do that if i change my job. I see IRA vs 401k differences is mainly former is individual ret. plan vs. other one is employer sponsored. I am assuming from tax POV, there is no other differences? I assume gain made in IRA is not taxable until retirement right? as well as withdrawal penalty are also same? Thanks.,

 

[ironchef]

Based on googlling, the tradingacademy.com url mentions long calls and puts are generally allowed in 401k https://www.tradingacademy.com/lessons/article/options-trading-401k-accounts-restrictions/
however my employer's internal policy regarding 401k plan does not allow that even though the brokerage company (fidelity) that services the 401k do allow. This caused fair amount of confusion and running back and forth.

Now with fairly large amount of cash sitting in my 401k account and can only do stock i feel quite vulnerable as I have seen and trading for years the options and options can be much safer than stock.

I am wondering about the possibility of rolling the fund to another 401k account that i can supposedly setup independently but i am not sure if my employer will allow the rollover while I am working there.

Has anyone ran into similar situation? Thanks.,

Don't fight city hall, your best option is to roll your 401K into a Rollover IRA then you can trade options up to long side spread, straddle, strangle, butterfly, condor, calendar.

 

[ET180]

Don't fight city hall, your best option is to roll your 401K into a Rollover IRA then you can trade options up to long side spread, straddle, strangle, butterfly, condor, calendar.

I did that. IB also allows cash-secured short puts.

 

[ggelitetrader000]

Fidelity is very strict. I have approval on my trust account to trade options buying, calls and puts, spreads. I ask them to give me approval for my IRA and they will only approve covered calls. I just transfer monies to my trust account and trade options. Of course, the tax advantage is gone since, it is a regular account. Never had the same problem with TD Ameritrade and Scottrade (bought out by TD Ameritrade). Dumb really. You are approved for trading options on one account but, they disapprove the IRA?

No it was not fidelity that they were restricted. they actually allowed making all sort of levels on my 401k account including level i,ii,ii etc., it is my employer's policy that restricted it. thx.

 

[ggelitetrader000]

I had very old account with Ameritrade which I logged in just now and still active although no fund. I just applied online and option level ii trading approved instantly with IRA anew. Isn't that too easy or I hope I am not missing something?