Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

guyentlab000

Option Trading Levels Does Not Make Sense.

Recommended Posts

I have 401k transferred to brokerage account recently however the brokerage only allows level 1 trading options which is

- covered calls

-cash-secured short puts

-protected puts

 

However level 2 is not allowed however, level 1 tradings for me is much riskier and potentially lose lots of money than level 2. Why do they structure like that? I am kinda frustrated

 

buy options

buy puts

Share this post


Link to post
Share on other sites

Apparently 401k accounts are not meant for "speculation." But i agree - these strategies could be more risky at times - you can't hedge them appropriately because you don't have all the available strategies.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.