There are different ways to trade options, resulting in various types of options strategies.
Buying Options vs Selling Options
Each strategy bears different risks and has a range of approval levels. 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 level for the strategy you wish to trade.
Note: If you want to trade option spreads in an approved IRA, you'll also need to complete the Supplemental Options Spread Agreement (PDF).
The options application asks for a snapshot of your current financial situation so be ready to provide your:
- Yearly income
- Options trading experience
- Net worth and liquid net worth
If you prefer, you can download, print, and complete the Options Application (PDF) and, if requesting the ability to trade spreads in an IRA, the Supplemental Options Spread Agreement and send to:
PO Box 770001
Cincinnati, OH 45277-0002