Series 7 - General Securities Representative Exam
Bob used to be an options trader in his younger days at the CBOT trading floor. He is now 57 years old and wants to sell naked calls in his Traditional IRA. Which of the following is TRUE about options trading in a Traditional IRA?
Certain derivatives that contain unlimited risk are prohibited in IRAs. Other options strategies that are secured by stock, such as selling covered calls can be permitted. Unlimited risk exposure strategies such as selling naked calls is not allowed