Rich C
Oct 10 1999, 10:10 PM
What are the rules regarding purchase/sale of equity and index options in Roth IRAs?
Gregory
Oct 30 1999, 03:16 PM
Anything short of the prohibited transaction rules are game. Is there some reason you believe otherwise?
John G
Oct 30 1999, 04:04 PM
The prior comment is misleading. Options come in more flavors and types than Baskin Robbins has ice cream. Most will not be allowed in a custodial/retirement account. For example, IRA custodians do not allow you to buy/sell any options that expose a retirement account to unlimited risk.
Custodian rules may be more restricted than IRS might allow. Some custodians will only allow selling covered calls for existing holdings. The best way to answer your question is to call your custodian and ask.
[This message has been edited by John G (edited 10-30-1999).]