Can You Sell Covered Calls in Your Fidelity 401k Account?

Many investors consider covered calls a great strategy to help them enhance their returns. And it’s true! I do it all the time in my regular brokerage account and retirement accounts.

Speaking of which, an interesting question was asked earlier today: “Can Fidelity customers sell covered calls in their 401k accounts.”?

Understanding Your Trading Restrictions

I’ve successfully sold covered calls in my Roth IRA account with Fidelity. But here’s the thing, doing it with a 401k might be different.

To get a definitive answer, I highly recommend reaching out to Fidelity customer service. They’ll be able to answer this specific question.

And here’s why you need to check with Fidelity in regards to selling covered options in your 401k account.

The ability to sell covered calls from your Fidelity 401k account might depend on the policies set by your employer.

In my case, I’m fortunate enough to have the freedom to self-direct my holdings through Fidelity. Unfortunately, I’ve found that trading options is not permitted under my employer’s guidelines.

In Summary

It turns out that whether you can sell covered calls in your Fidelity 401k isn’t the same for everyone. It depends on the kind of account you have and what your employer says.

Here’s what you need to do: give Fidelity a call and chat with your employer or the person in charge of your 401k. They may have to manually approve you for options trading.

Diego, a seasoned financial analyst in New York, brings a decade of expertise to guiding financial decisions. As a blogger for, he simplifies finance, offering insights on Fidelity Investments. Beyond numbers, he explores NYC's culture and enjoys capturing moments through his photography.

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