Lafferty now permits option trading in your IRA, Roth IRA, SEP, 401K Rollover, and Keough accounts.

Lafferty permits the following option strategies in these accounts:

BUY-WRITES

Covered call writing involves the sale of a call option against a stock purchased by an investor. It can be used to increase income against current stock holdings. The writer receives cash for selling the call but will be obligated to sell the stock at the strike price of the call if the stock is called away from him. In other words, an investor receives a fee in exchange for agreeing to sell his holdings at a certain level known as the strike or exercise price. In exchange for this fee, the investor gives up any increase in the stock above this strike price.

SELLING CASH-SECURED PUTS

Selling a cash-secured put involves selling a put and holding the money for the purchase of stock in your account. The purpose of having the money in the account is to assure that funds are available to purchase the stock should the stock be put to the account. By selling the put, the investor receives the premium while waiting for the stock to decline to the price at which he is willing to own it. If the stock does not decline to the strike price by expiration, the seller keeps the premium.

DEBIT AND CREDIT SPREADS

Spreads are a complex option strategy used by serious option traders. Lafferty allows traders the ability to trade spreads in their IRA. In certain cases, you will need to have cash to secure the option position. Please call for details.

Disclaimer: Option trading is highly risky and only pure risk capital should be invested.

Find out more about Lafferty's in-house option research.