IG SIPP Query

[gyv]

Hello,

I am considering transferring my SIPP over to IG. I would like to know if I can trade US options in the SIPP. I will give two examples:

1. I hold 3800 shares in CTSH, which is trading at $53. I would like to sell 38 contracts of the CTSH JULY 2020  $55 CALLS . Would this be possible ?

2. I would like to sell 38 contracts of CTSH JULY 2020 $50  PUTS. Can I do this in my SIPP provided there is suffcient cash to make the purchase if I have to ?

Kind regards

Gavin Vadivalloo

[gezmond]

no, but some  option dealing platforms will allow  a select few sipps to “link “ to them eg interactive brokers and saxotrader will allow option dealing in atsipp.co.uk SIPP ....I have a feeling the type of options strategies might be limited to covered calls since margin is probably not allowed in a sipp...so you may be able to do 1. but maybe not 2.(except if u have the cash to cover the put)

Edited June 15, 2020 by gezmond
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[gyv]

Thanks for this gezmond, that was very helpful.

[NothingToSeeHere]

Gavin, I do not yet have a SIPP with IG, but was thinking along exactly the same lines as yourself - only with UK as well as with US stocks; I would take advantage of IG's platform and would like to write covered calls on equities, and in some cases cash-secured puts.

P.lease can you update in this thread if there's an ability anywhere to conduct such trades in a SIPP?

I'd be most grateful to better understand what is available within this type of product/wrapper.

Thank you!