To enable naked short calls in your IRA, you must meet the following eligibility requirements listed below.
Eligibility for Naked Short Calls in IRA Accounts
- You must be eligible* for IRA The Works.
- IRA account must maintain a net liq of at least $25,000.
- Margin requirement for short calls is 100%. For example, a short $20 call requires $2,000 in options buying power.
- No short calls in volatility products.
- Stocks under $10 are not eligible.
- Selling covered calls (with a long stock position) is available in all IRA account levels.
*Eligibility for "IRA The Works" is dependent upon your suitability (Trading Objective, Trading Knowledge, and Financial Standing). Your suitability is determined by your investor profile. Please refer to slide 6 in the animated step-by-step guide below.
How to Enable
To enable short calls in your IRA, please sign into your account at tastyworks.com then navigate to My Accounts and select Trading Preferences. Or, you can click here to access your Trading Preferences directly. Please follow the animated step-by-step guide below. To navigate, click the right and left arrows, located beneath the image.
**Please do not use Microsoft Internet Explorer or Microsoft Edge when enabling.
After you ENABLE Short Calls in your IRA (if eligible), your trading level will change to “IRA The Works.”
Please Note: If your account is LESS THAN $25,000, then you may still ENABLE short call writing in your IRA, as long as you are eligible and suitable for The Works. If IRA The Works is greyed out after enabling short calls in your IRA then please click here to learn how to potentially upgrade your trading level. Or, to learn about our different trading levels, please click here. Once your account becomes eligible, then you may sell calls.
If you do not see the ENABLE button for short call writing in your IRA, then your browser may be caching old data. To bypass this and refresh your browser please use the following keystrokes:
PC: CTRL + F5
Mac: ⌘ Cmd + ⇧ Shift + R