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Author: donaldtran9 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75540  
Subject: Roth IRA - Investment Types Date: 2/25/2001 2:47 AM
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Are you allowed to trade options in a Roth IRA? Or is a Roth IRA limited to stocks, bonds, and mutual funds? Thanks!
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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: 28104 of 75540
Subject: Re: Roth IRA - Investment Types Date: 2/25/2001 8:08 AM
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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

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Author: Ringfinger Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28138 of 75540
Subject: Re: Roth IRA - Investment Types Date: 2/26/2001 1:05 PM
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IMHO, options in an IRA are not a very Foolish choice.

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