I am just starting out. I was just thinking about opeaning an account with Datek Online so I thought I would post a thread. I only have $600.00 to start out and I want to do realitively short term option plays that have made me money on paper. My job gives me access to a computer, Datek seems like a good choice for my situation. Any advice out there?
While their direct-access capability is rather weak in comparison to other non web-based brokers, Datek is a fine online broker with a very competitive commission schedule. I do believe that you must have at least $2000 in your account to be allowed to trade options. Also, Datek has added option functionality very recently so the last I checked (2-3 months ago) it was rather limited - you could basically only buy/sell calls and puts. Of course it all might have changed since. Good Luck, IRAF
LN, I assume that your $600 is play money that you can afford to lose, because you basically have no margin for error. You also will be unable to do any naked option plays, as you don't have enough equity to cover the margin requirements for almost any naked option position. I believe IRAF is correct that Datek will not allow naked options. In my opinion you should try to save up another $3000 if you can, and then just open an account with IB, where you will be able to do any options play. Either way, best of luck to you.