IRA trades

[D.L. 0]

I can't do these trades out of my IRA. Is there a brokerage that allows all these types of trades out of a traditional IRA?

[D.L. 0]

Currenlty I have IB and have been following these trades with a small $2,500 cash account. Once I felt safe in entering and exiting these trades after a year I rolled over my IRA so I could start trading that.

[NOLA 4]

I have a small self-directed Roth IRA that I trade will Ally and I do some of these trades through that account and all of them through my cash account.

[Yowster 7,996]

2 hours ago, D.L. said:

I can't do these trades out of my IRA. Is there a brokerage that allows all these types of trades out of a traditional IRA?

I don't do these trades within an IRA, but based on other members comments I believe that many of them do.    Perhaps its as simple as getting your account setup for certain levels of options trades.

[BJK 15]

3 minutes ago, Yowster said:

I don't do these trades within an IRA, but based on other members comments I believe that many of them do.    Perhaps its as simple as getting your account setup for certain levels of options trades.

You can do all of these trades in an IRA. As Yowster said, you need to fill out the paperwork to get appropriate option level, if your broker supports. Fidelity allows margin within their IRAs...that's a manual approval process, but easy to get. I don't necessarily recommend Fidelity. Their commissions/fees are the best for the big brokerages, but if you trade a lot of numbers, best to go with a brokerage like Tradier (I do not know their IRA policies).

[Noah Katz 90]

Yes, you have to get the right options permission, which you can do electronically and easily if you use Tradier.

[D.L. 0]

Is there anyone who does ALL these trades out of their IRA and if so what brokerage are you using?

Edited February 5, 2019 by D.L.

[D.L. 0]

IB doesn't let you trade calendars out of an IRA according to two of there chat assistants. TD Ameritrade does let you trade but at $0.75 a leg plus $6.50 commission the margin is eaten up entering and exiting trades. Need a good option to do these trades with my IRA. Its only $35,000 but it mine!

 

[kirkr1517 108]

Just now, D.L. said:

IB doesn't let you trade calendars out of an IRA according to two of there chat assistants. TD Ameritrade does let you trade but at $0.75 a leg plus $6.50 commission the margin is eaten up entering and exiting trades. Need a good option to do these trades with my IRA. Its only $35,000 but it mine!

 

I use Tastyworks and they let you do all of the SO trades for $1 per option opening, no closing fees, no ticket charges.

[D.L. 0]

I know there is advice on which brokerage to use but I am unsure if there is specific advice on using an traditional IRA account to do all these trades and which brokerage allows it.

[D.L. 0]

And that is with a traditional IRA

2 minutes ago, kirkr1517 said:

I use Tastyworks and they let you do all of the SO trades for $1 per option opening, no closing fees, no ticket charges.

And that is with a traditional IRA?

[kirkr1517 108]

@D.L. Yep.  That's what I have, just the traditional IRA.

[D.L. 0]

I haven't heard about Tastyworks. Is there a SO discount?

 

[kirkr1517 108]

No there's no discount.  Here's the link:  https://tastyworks.com/

[D.L. 0]

add the fills are pretty good? How long have you been using it?

 

Edited February 6, 2019 by D.L.

[kirkr1517 108]

Average.  Basically the same as when I was with TD Ameritrade.  

[D.L. 0]

and how long have you been using it?

 

[kirkr1517 108]

Two years.  That's when they started the brokerage.

[D.L. 0]

Awesome. Very helpful sir! I appreciate it greatly

 

Edited February 6, 2019 by D.L.

[D.L. 0]

So you haven't missed out on one trade with them because of leg ratios?

[kirkr1517 108]

No problem.  Can enter calendars just fine, and for hedged straddles, you open the straddle first, then sell the strangle.  But you can do all the SO trades because they don't trade any naked options.

[D.L. 0]

so some trades just require to enter it in parts. got it. but can exit all at once?

 

[kirkr1517 108]

I believe you can exit in one trade.  But I've had better luck closing them separately, just my experience.  You just can't have a naked trade.  So for example, you either close the hedged straddle as one trade, or you must first close the strangle, then the straddle if you split it into two trades.

[Yowster 7,996]

22 minutes ago, kirkr1517 said:

I believe you can exit in one trade.  But I've had better luck closing them separately, just my experience.  You just can't have a naked trade.  So for example, you either close the hedged straddle as one trade, or you must first close the strangle, then the straddle if you split it into two trades.

When splitting the closing of hedged sdraddles into two orders you can also close the winning side in one trade (shorts and longs) and then close the losing side in another.   I'll often do this when the stock price has had a big move - closing the winning side first in one order since its very sensitive to stock price movement with its ITM, and then closing the losing side whose price moves much slower.