Option Levels

Option Level indicates the level of options trading if the account is approved to trade options.

Note
For levels 3, 4, and 5, a Margin Account Agreement must be on file.

Level Description
1 Covered call writing on equity options
2

Level 1, plus:

- Purchases of calls and puts (equity and index)
- Writing of cash covered puts
- Purchases of straddles/combinations (equity and index)
- Collars and conversions of equities

Required for Spread trading in IRAs.

3

Levels 1 and 2, plus:

- Equity and index spreads
- Covered put writing
4

Levels 1, 2, and 3, plus:

- Uncovered writing of equity options
- Uncovered writing of straddles/combinations on equities
- Convertible hedging
5

Levels 1, 2, 3, and 4, plus:

- Uncovered writing of index options
- Uncovered writing of straddles/combinations on equities
- Covered index options
- Collars and conversions of index options

 

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