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Does anyone trade this in an IRA? I am thinking about PUT spreads but make them very wide to mimic naked puts ... I tried a search in the forum but did not see anything related to this. If I missed the thread, please feel free to point it out. Thank you!
I haven't. By doing the put spreads you might be able to get around the strict margin restrictions in retirement accounts. If you do this, please update us on your experience. 🙂
I've been doing this in an IRA. I collect difference between short and long, usually about 0.65-1.00 per 10-15k width spread.
@earlyretirementnowcom Yeah, it's been working out alright. I'm doing this in a Schwab account.
I believe there was some limitations to this strategy in IRA, not being able to use leverage in an IRA and so limiting the possible alpha of this strategy. Any comment on this?
@perig Correct. I'd use this strategy only in a taxable account with portfolio margin and with 2-3x leverage to make it worthwhile