We have introduced two new, lower levels of option trading permissions — Level 1 and Level 2 — to extend option trading access to clients who may not currently qualify for the existing permission tiers. The previously named Limited permissions have been renamed to Level 3, while Full permissions are now referred to as Level 4.
The type of option strategies available to trade will depend on the level of option permissions approved on the account.
The various levels are as follows:
| Level | Option Strategies Allowed |
| Level 1 | Covered calls, i.e. short call vs long equal quantity of underlying, are allowed. |
| Level 2 | Covered Options Positions as defined by FINRA Rule 2360 are allowed with the additional restriction that the expiration date of the long option must be on or after the expiration date of the short option in a spread. |
| Level 3 | Option strategies that have limited maximum potential loss are allowed. |
| Level 4 | All option strategies are allowed. |
For examples of the types of option combinations allowed in each level, please see the following chart:
| Strategy | Level Requirement |
| Covered Call/Covered Basket Call | Level 1 |
| Buy Write | Level 1 |
| Long option positions | Level 2 |
| Long Call | Level 2 |
| Long Put | Level 2 |
| Covered Put | Level 2 |
| Protective Call | Level 2 |
| Protective Put | Level 2 |
| Long Straddle | Level 2 |
| Long Strangle | Level 2 |
| Conversion | Level 2 |
| Long call spread | Level 2 |
| Long put spread | Level 2 |
| Long Iron Condor | Level 2 |
| Long Box Spread | Level 2 |
| Collar | Level 2 |
| Short Collar | Level 2 |
| Short Put | Level 3 |
| Synthetic | Level 3 |
| Reversal | Level 3 |
| Short Call Spread | Level 3 |
| Short Put Spread | Level 3 |
| Short Iron Condor | Level 3 |
| Long Butterfly | Level 3 |
| Unbalanced Butterfly | Level 3 |
| Short Butterfly | Level 3 |
| Calendar Spread - Debit | Level 3 |
| Diagonal Spread - Short leg expires first | Level 3 |
| Short Naked Call | Level 4 |
| Short Straddle | Level 4 |
| Short Strangle | Level 4 |
| Short Synthetic | Level 4 |
| Calendar Spread - Credit | Level 4 |
| Diagonal Spread - Long leg expires first | Level 4 |
Please Note
- IBKR cannot disclose its eligibility requirements for products. Please do not contact Customer Service to ask for these criteria as they cannot provide additional information.
- Calendar Call Spreads utilizing European-style options are not permitted in Cash or IRA accounts. Only spreads with identical expiration dates are authorized for European-style options. This restriction applies to all account types, including IRA accounts with margin approval.
Additional Information