Things Prohibited Investment Policy Naked Options

Things prohibited investment policy naked options

What trading restrictions/rules are there for IRAs?

Which Is Better, Naked Options or Spreads?

 The only universal restriction is tied to IRS rules that do not allow borrowing from an IRA account. This restriction blocks short selling, leverage using margin, and the sale of naked put or call options.

Brokerage firms vary in what they allow, but generally, you can trade all stocks and exchange-traded products (ETFs & ETNs) including leveraged (SSO),  inverse (e.g., SH), and volatility funds (e.g., VXX, SVXY, ZIV).

Things prohibited investment policy naked options

Some trades such as options, leveraged/inverse funds, volatility funds, or futures will likely require extra paperwork/qualification.