An account must first have approved US option trading permissions to enter an option order. 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. |
Additional Information
- Option Levels 1-4
- You can review or modify your trading permissions in Client Portal.