SIE practice questionhardAccount Types – Options in IRAs
Which options strategies are generally NOT allowed in retirement accounts like IRAs?
- ALong puts
- BCovered call writing
- CUncovered (naked) options writing✓ Correct answer
- DLong calls
Explanation
Why C — Uncovered (naked) options writing
Uncovered (naked) options writing is too risky and typically prohibited in IRAs and similar retirement accounts, while covered calls or long options are often permitted.
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