Requirements For Various Option Account Levels

Posted by OptionA on June 30, 2008 (04:13PM)

Does anyone know if there's anywhere that says the general requirements are for each level of option account?

I have seen someone else ask why they can't be level 2, and I originally applied for level 2 as I only intended on buying puts and calls at the time, but now I have learned more, I want to apply for a level 3, but don't want to waste my time if I am not close to qualifying. And I also want to know how much more "networth/time investing/etc" I need for each level.

It doesn't need to be very accurate, I just need a ballpark rough estimate, or an example of someone that would qualify for each level.  Currently I just need level 3, but I figure other people are wondering the same thing for different levels.

Posted by OldFart on June 30, 2008 (04:51PM)

I replied to your question in the covered call thread
Nopho_thumb Brokerage Account

Posted by SF on June 30, 2008 (09:27PM)

OptionA: Actually it's listed on the application. Go to Services -> Apps + Forms then under "Other forms" its the first one in the right hand column. You'll see that it tells you the "minimums" in the spot where you are checking off which level(s) you are requesting. I'm not completely sure on its accuracy though because when I applied for level 2, which says absolutely no requirements, I was denied. Quite depressing; I've been trading options on paper(websites like investopedia) for some time and wanted to do some on my account here for some real life practice but I cannot. :(

 Good luck with everything.

Posted by $tocker on July 26, 2008 (11:07AM)

Tradeking is a bit too strict on Options trading.  They only gave me Level 1.  I have been trading for about 2 years.  After I got my Tradeking account, I called S****trade, and they told me I would have been approved for level 3.  I was too lazy to move, and I wanted to explore everything Tradeking has.  And I figure I will just open another account for Options Trading with another company.  C'est la vie I guess.

Posted by OldFart on July 27, 2008 (05:32AM)

Stocker, I agree. I think they are trying to be more cautios and protect themselves. Something like "when in doubt err on the side of caution". I had the same problem, resubmitted the option form and attached a short explation why I think I should be able to trade at higher level. Worked for me.

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