Options in your IRA

In fact, your IRA or other tax-deferred account might be the ideal place to sell cash-secured puts. You collect premium while you wait for the stock or ETF to come down to the price you want to buy it. If it never reaches that price, no problem, you collect periodic income as your puts expire. And if the stock or ETF is put to you are still happy. You've acquired what you wanted at the price you wanted plus were paid a premium to do so. Now you have the shares and you are free to sell calls against them. In fact, this sounds like an excellent idea: write puts until you acquire the shares your interested in. Then enter into a covered call (+ or - a collar) on the position to collect more premium and protect your downside.

Keep in mind that in order to sell covered calls or cash-secured puts in your IRA you must have it in a self-directed brokerage, and have the account enabled for this activity. For more discussion see the section on option brokers.