What level of options trading is allowed in an IRA?
Please note that the only option strategies allowed in an IRA is the writing of covered calls and the buying of puts or calls. If transacting options in an IRA, one must be aware of the unique qualities of an IRA account. Therefore, holders of long options in an IRA account must have a cash balance equal to or greater than the requirement to exercise the options in the account on the last day prior to expiration or Newedge USA will close out the position in the open market on a best efforts basis prior to the market close. Newedge USA does not have any specific criteria for option trading approval in customer accounts. Each new account application is treated individually based primarily on the customer’s trading experience and state of financial condition.
