You can trade options in a ROTH IRA, but there is less flexibility than in a standard margin account. Your ROTH IRA account must be over $25,000 to be accepted for options trading, and you must wait for your cash to settle to avoid good faith violations.Restrictions:ROTH IRA accounts are meant for retirement investments. Therefore, there are various restrictions for using margin and options since long-term investors generally do not trade options.Stock brokers will not allow you to use “full margin” in your ROTH IRA. Instead, you can only use “limited margin.” Limited Margin:Limited margin allows you to sell cash-secured puts, covered calls, and buy options using your settled cash. Limited margin does not allow you to short stocks, open naked options positions, or borrow against your holdings to create cash or margin debits. Pros/cons and Strategies using ROTH IRA Options
