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Author: ThreePercent Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76419  
Subject: Options Trading in an IRA Date: 7/4/2000 10:45 PM
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Does anyone know of brokers that will allow you to trade options in an IRA. I max out my 401K each year and am fairly diversified in the funds I choose with that plan. Therefore I would like to take more risks with my Roth. I'm particularly interested in trading LEAPS. I'm 31 so I have a fairly long time horizon till retirement. As best as I can tell there is no law against doing this, just company policies.

Any info would be appreciated. If you know any brokers allow this practice can you e-mail me at mullen7s@aol.com as I don't check these boards as often as I would like.

TIA
-Mike
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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23087 of 76419
Subject: Re: Options Trading in an IRA Date: 7/5/2000 7:15 AM
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You cannot, by law, use margin or borrow against your IRA. Therefore, you cannot engage in any option position that could subject your account to margin.
Most brokers will let you sell covered calls, buy a call, buy a put, or sell a put if there is cash in the account to pay for the stock if you are put to.
Hope this helps. Chris

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