The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Roth IRA - Investment Types Date:  2/25/2001  8:08 AM
Author:  Crosenfield Number:  28104 of 88792

You can trade options in a Roth IRA if your custodian say you can; however, you cannnot in any form use margin.
If your custodian allows it, you can buy options, sell covered calls, and sell a put as long as there is cash in the account to cover an exercise. If you own an option you can sell it, but you cannot sell a naked call. Similarly you cannot short a stock in an IRA.
Some custodians will not allow option trading at all, but that is the custodian's choice not a federal regulation pertaining to IRAs.
Best wishes, Chris
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us