any options brokers which would allow uncovered options with just $600?

Discussion in 'Options' started by TGpop, Jun 16, 2010.

  1. TGpop


    I see all of these brokers like sogotrade offering $500 minimums but i believe they only allow covered calls etc, what i want is to trade normal options but no outright stock, are there any cheap brokers, or do i absolutely have to have $2000 minimum?
  2. charts


    They need some guarantee that they won't lose money on you ... :)
  3. JeffUSA


    You might be able to do it but your choices would be very limited. It would have to be very cheap stocks because they would probably want enough cash in the account to cover the entire underlying position.
  4. stoic


    Uncoverd options must be in a margin accout. The rules of the exchange require that a margin account have a minimum of $2000
  5. I notice that sometimes people get the term "uncovered" confused when it comes to options. "Uncovered" options as the industry uses the term refers to writing or selling calls or puts, without owning the underlying stock or instrument...or being short the underlying instrument in regards to writing puts. Being naked. You definately need a margin account and usually a decent amount of equity in your account, plus naked trading approval to do those strategies. However sometimes people mistakenly refer to simply buying a call or put as buying a "naked" option. Going long a call or put does not require margin approval at most online trading firms. You simply need long options approval and enough cash to cover the premium of the call or put.
  6. TGpop


    jj jj: all i want to do is simply buy calls, and buy puts, but without any ownership of outright stock, does doing this require margin?
    Kelly: No - you can do this in a Cash account
    jj jj: ok

    problem sorted, now, the fact that i didn't know this is a big siren! options volatility and pricing just arrived by natenberg and i hear it's excellent, here goes!