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Re: willco post# 37627

Wednesday, 01/24/2007 5:46:50 PM

Wednesday, January 24, 2007 5:46:50 PM

Post# of 151692
Willco,

I think the rule on buying puts is that you must have the money in the IRA to make good if the put gets exercised. This rule is a relaxation of the old rules which only allowed covered call writing. Will

Yes, I believe you are right. Selling a put ties up quite a bit of cash in the account. But, on the plus side, at least the cash is still making some money in the money market.

Joe
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