Beginners are not permitted to buy spreads?

S

Shahin

Hi
I recently decided to learn more about option trading and I decided to start slow and with my own money. I joined OptionsHouse, only to learn that as a beginner with no prior experience in trading, they do not permit me to trade spreads, or sell any options. So, I am left with only two choices: "Buy Calls" and "Buy Puts".

Is this normal? How are the beginners with no prior experience expected to gain experience if they are not allowed to do this? I am more puzzled by the fact that my available choices are riskier than some of the spreads. Any solution which helps me gain access to Spread Trading on OptionsHouse or any other trading platform is welcome.

Thank you all in advance for providing your thoughts.
 
I have never heard of this before, perhaps is your account balance small? Or time to find a different broker by calling around. OptionsHouse trying to reduce their risk.
 
You may be right. It is very puzzling to me too. My balance is $2000. I heard the same thing from Merrill Lynch which made me believe this is a common thing and not limited to just one trading broker.
 
Shahin said:
Hi
I recently decided to learn more about option trading and I decided to start slow and with my own money. I joined OptionsHouse, only to learn that as a beginner with no prior experience in trading, they do not permit me to trade spreads, or sell any options. So, I am left with only two choices: "Buy Calls" and "Buy Puts".

Is this normal? How are the beginners with no prior experience expected to gain experience if they are not allowed to do this? I am more puzzled by the fact that my available choices are riskier than some of the spreads. Any solution which helps me gain access to Spread Trading on OptionsHouse or any other trading platform is welcome.

Thank you all in advance for providing your thoughts.
More...

If you said you don't have experience, then that is pretty normal. Once you know what you are doing, just apply to have your trading permissions increased so you can do spreads. They will ask you the same experience questions....have a better answer than what you used the first go round lol.
 
Better to learn how to buy under priced premium then sell it... Everyone tends to think selling is what professionals do... Better to buy leaps and learn the nuances of trading options before diving in... Buying debit spreads is not necessarily the least risky purchase as outright preimum purchases can pay alot more yet both have capped losses
 
You just have to lie on the risk experience form, your broker wont care just fill in another 1.

Selling calls and puts, 95% will profit but the other 5% will lose so much you'll still lose, stick to buying firva while.
 
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