Option trading accounts


Visit our Learning Center to find several courses on options trading. Options trading strategies involve varying degrees of risk and complexity. Not all strategies are suitable for all investors. There are five levels option trading accounts options trading approval, and the approval requirements are greater for each additional level since there's more risk for you and Fidelity.

A new options application and a Spreads Agreement must be submitted at the same time and approved prior to placing any spread transaction. Each strategy bears different risks and has a range of option trading accounts levels. Margin trading entails greater risk, including, but not limited to, risk of loss and incurrence of margin interest debt, and is not suitable for all investors.

With a put option, the buyer has the right to sell shares of the underlying security at a specified price for a specified period option trading accounts time. Margin trading entails greater risk, including, but not limited to, risk of loss and incurrence of margin interest debt, and is not suitable option trading accounts all investors. There are different ways to trade options, resulting in various types of options strategies. Expand all Collapse all.

Mail in 3 to 5 days—based on your delivery preferences. Each strategy bears different risks and has a range of approval levels. Option trading accounts all strategies are suitable for all investors. Skip to Main Content.

Before you place your order, you'll need to complete an options application, have an options agreement on file, and be approved for the appropriate option option trading accounts for the strategy you wish to trade. The options application asks for a snapshot of your current financial situation so be ready to provide your: Level 3 includes Levels 1 and 2, plus equity spreads and covered put writing. Note that customers who option trading accounts approved to trade option spreads in retirement accounts are considered approved for Level 2.

How to Add Options Trading to Your Account There's a lot to learn when it comes to trading options, but we have the tools to help give you the confidence to put together a strategy. When you buy an option, you have a contract that gives you the right not the obligation to purchase or sell an underlying security, such as a stock, at a set price option trading accounts a specific time frame. When option trading accounts ready to start, you can add options trading to your accounts. Please enter a valid ZIP code. What do I need to know?

What do I need to know? Your financial situation, trading experience, and investment objectives are taken option trading accounts consideration for approval. Before trading options, please read Characteristics and Risks of Standardized Options. If you do not have a Margin Agreement, you must either add margin or use cash. How option trading accounts Add Options Trading to Your Account There's a lot to learn when it comes to trading options, but we have the tools to help give you the confidence to put together a strategy.

Supporting documentation for any claims, if applicable, will be furnished upon request. Send to Separate multiple email addresses with commas Please option trading accounts a valid email address. Visit our Learning Center to find several courses on options trading. Before trading options, please read Characteristics and Risks of Standardized Options. Level 4 includes Levels 1, 2, and 3, plus uncovered naked writing of equity options and uncovered writing of straddles or combinations on equities.