Tastyworks Is Now Making Naked Calls Available In IRAs
- Thread starter ajacobson
- Start date
How do you feel about this?
I agree, I don't see the reason to have that in an IRA. This could only cause more harm then good.
A bold move. Will require adding risk management staff and software. But now you'll be able to write strangles,etc. in ira's. Points for being bold, clearly distinguishes the firm. Plus as it will take ton of pseudo margin which means they be bringing lots of money and or margin able securities into the firm
Robert Morse
Sponsor
How do you meet a margin call in an IRA?
Sell your positions? The problem isn't the margin call, the problem is having the account end up worth less than zero.
They're such pros over at TW, never suspecting for one moment that Karen was a total fake outside of her initial beginner's luck phase under perfect market conditions.
If you're going to play "the keepaway game" then do it unleveraged, regardless of the account type. Nothing wrong with owning stock in decent companies at lower averaged prices than you could get if you didn't use options (i.e. cash covered puts). Like I said before, if you time your CC put sells on pullbacks into known strong support areas, the likelihood of getting the stock assigned is reduced (in a bull or sideways market, duh), so you'll be collecting premiums which expire OTM. Those collecting premiums push your cost avg down in addition to the premiums you collected on stock that was assigned. [Don't be greedy though. If your premium happens to shrink very quickly by 50% within a week or two of the put sell then buy them back. You'll get a lot of those coming back to test the same area and you can reload there or another strike down...my experience]
Only problem is that the market is too high, in general, and the protection level is poor (using 5-6 mo ATM premiums as a benchmark where "poor" is less than 13% ATM for taking the risk)
If you're going to play "the keepaway game" then do it unleveraged, regardless of the account type. Nothing wrong with owning stock in decent companies at lower averaged prices than you could get if you didn't use options (i.e. cash covered puts). Like I said before, if you time your CC put sells on pullbacks into known strong support areas, the likelihood of getting the stock assigned is reduced (in a bull or sideways market, duh), so you'll be collecting premiums which expire OTM. Those collecting premiums push your cost avg down in addition to the premiums you collected on stock that was assigned. [Don't be greedy though. If your premium happens to shrink very quickly by 50% within a week or two of the put sell then buy them back. You'll get a lot of those coming back to test the same area and you can reload there or another strike down...my experience]
Only problem is that the market is too high, in general, and the protection level is poor (using 5-6 mo ATM premiums as a benchmark where "poor" is less than 13% ATM for taking the risk)
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