It’s often thought that you cannot trade options in an IRA. Realistically, IRAs are restricted in the following ways:
- No leverage
- No short selling
Is there a way we can get synthetically short in an IRA?
With a tastyworks account, you can trade cash secured naked calls in your IRA. Therefore, one way to get synthetically short is to buy a put and sell a call of the same strike. No matter which strike you choose, your long and short thetas will cancel each other out resulting in a clean short 100 delta position.
With a little creativity we can simulate most, if not all, trading strategies available to margin accounts.