Originally Posted by
ocean
That's why I didn't open the margin account with Interactive Brokerage (IB) even they offer it. As far as I know, this is the only brokerage firm that offers margin IRA and I believe IB is a British owned company. That may be the reason that no other US companies can offer it.
With the new IRA account, all my stocks will be dividend reinvested but I will pick a few stocks for covered call options to generate residual income. For example, today I wrote a covered call for MSFT with strike price at 28 for $.52 expiring on Nov 18. I have 2000 shares so I can write 20 calls to generate $1040 before commission. My average purchase cost was $27 which I bought yesterday with my new TSP transferred money so it would lower my purchase price to around $26.48. Also Nov 15 is an ex-dividend date for MSFT so I will collect another quarterly dividend pay out of $400.
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