Trading Options
- Thread starter GotherL
- Start date
- Open a margin account - not cash account.
- Deposit funds.
- Trade.
- The browser based trading platform is very good.
Well not so fast. They ask your net worth, liquid net worth, experience level, blah blah blah and have to ask for options permission which comes in 4 levels, 0-3, the 3rd being the hardest to get where you can sell naked puts and calls. 0 is easy to buy sell puts/calls, 1-2 are common, but 3 you need a lot of money in your account and cannot be IRA.
IB eliminated the $10,000 minimum to open an account - I believe there is no minimum now.
And as far as the net worth, income, experience level, etc. is concerned those answers can be fudged - brokers do not confirm.
There would be no harm to the trader or the broker - absolutely none.
If you already have an account with IB, just go to your trading permission and request for permission to trade options. There are some questions you need to answer for compliance purposes. Once they are done, you are good to go. If you don't have an account with IB yet, just open one and set it up to trade options.
You don't want to trade naked options anyway otherwise this can happen:
Every time you think of trading naked options, think of this bozo. What happened to his clients could happen to you.
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Are you saying that I can sell naked options at IB with a $9000 account? It is hard to believe when their futures margins are so conservative.