Options Question

[TripleBuy]

Have a question regarding options and a Roth IRA.

Let me lay down some assumptions first.

1)My contribution limit for 2006 is $4000
2)I have contributed $4000 to my Roth for 2006
3)I have purchased $1000 worth of calls with money from my Roth IRA.
4)The calls expired worthless

I'm out the $1000, so my question is: Can I contribute another $1000 to my Roth IRA this year?

[chazutx]

I do not believe you can contribute another $1000. I think they base the contribution total as a fixed contribution amount per year. Once you reach that you can't contribute anymore even if you have losses. Can someone else confirm this?

[vthokienj]

Yes this is true. You can not replace your loss.

This is interesting though. My Roth IRA is through Scottrade and they at
one point told me the only options trading I could do was selling covered calls. Thought this applied to all Roths but it must be specific to them.

[TripleBuy]

Thanks for the feedback guys! :D

[pmb1010]

the only options trading I could do was selling covered calls. Thought this applied to all Roths but it must be specific to them.

Fidelity Roth IRA is the same - options trading very limited, making it pretty much useless.