7 Replies to “Tales of a Technician: Covered Call Alternatives for IRAs”

  1. ThomasFlohr says:

    Tyler you have a great way with words and explanations. Keep them coming !
    I tried the Diagonal (poor Boy) covered call. When I tried to sell another call after expiration order rejected Illegal trade in an IRA. Did I do something wrong or should I have rolled it ?

    Thanks for ALL of your insight !

  2. AdiPuplampu says:

    Great article Tyler, Just the problem I was dealing with. Now I have some studying to do but really great article. Have a great day! Best regards, Adi

  3. TylerCraig says:

    Hi Thomas. Good to hear from you. My bet is that your broker viewed the new order to sell the call as a naked call and didn’t properly connect it with the existing long-term call option. I would contact them to see if that’s the case.

  4. KEITHGIUNTA says:

    Just the information that I needed. Thanks Tyler.

  5. DEREKWILCOX says:

    @Thomas- do you have any other open positions in same ticker? If so or if so and any open orders it will mess with that. TOS has an issue with the IRA accounts and how it automatically pairs different options together. It is meant to get you lowest BP possible, but sometimes it messes up and you have issues. One issue I ran into was similar to what your saying where I had 100 shares SPY with a covered call and a bear call spread on with GTC order and when I bought the call back and went to sell another it had paired part of bear call with stock as a covered call so computer said -1 illegal shares since it thought I already had a call sold against the stock. Call TOS and they will go through your statement with you and figure out what problem is :-). Sorry for long reply, but I hope helps!

  6. ThomasFlohr says:

    Thanks Tyler & Derek I guess a call to TOS is what I’ll be doing.


    Thanks Tyler. I have a small retirement account and this really helps out.

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