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L

lambard

Guest
What is the name of your state?
Alabama
I am an experienced investor. Have been trading stock & index options for 20 years with overall profit. No nakeds, just buy puts or calls, depending on which way I think things are going to move. Opened rollover IRA acc't w/Schwab about a year ago. Was told I could do this in my IRA. Filled out options app., etc. Thurs. was first attempt to buy puts and (online) was told unable in this account.

Read my IRA agreement and Options agreement. Nowhere does it prohibit options trading in an IRA. In fact, in the IRA agreement it says that Schwab will NOT act as an investment advisor unless otherwise agreed in writing.
Just one little sentence (in the options agreement) that says "We may at our discretion and without notice restrict or prohibit option trading or certain types of option transactions in your brokerage account". Seems to me restricting an account in this manner amounts to "advice".

Just talked to Schwab rep & he confirms it is "co. policy" not to allow buying puts & calls in IRAs, just writing covered calls. This completely negates my investment plan, eliminates leverage, etc. It is to my benefit to be able to do this in a tax deferred acc't.

I really resent being protected against myself. Can I:
1. appeal this decision in-company? or
2. apply for arbitration?

Thank you.
Massey Lambard
 


bigun

Senior Member
Sure, you can work your way up the food chain. But, to take them to arbitration is fruitless. Their internal policy hasn't violated any securites laws or harmed you in any way.
 

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