Full service broker will not do options

Discussion in 'Options' started by ZEAK, Oct 29, 2008.

  1. MTE

    MTE

    That's the reason I said he's not selling nakeds! That is, he actually has the cash to buy the stock so technically he's not selling naked.
    Anyway, his broker is obviously too restrictive.
     
    #11     Oct 30, 2008
  2. MTE

    MTE

    Ditto.

    TOS doesn't have trading levels.
     
    #12     Oct 30, 2008
  3. ZEAK

    ZEAK

    Thanks for all the opinions. I think it is just that they dont want to bother with options as they do not do much of them. Too bad, as I could have hedged my account some before this sell off.

    Got an IB account so I will use that to sell cash secured puts until I have all the shares I want. Much cheaper comish as well.
     
    #13     Oct 30, 2008
  4. i didn't make myself clear last time so i'll try again.

    you don't seem to understand what "naked put selling" is, and neither does jjack for that matter.

    if the op sells a put without shorting the stock, that is a naked short sell. whether he has the cash to back it up is not relevant to the definition of 'naked'.

    one more time:

    he was attempting to sell naked; it doesn't matter if he has a billion dollars in the account, it's still considered naked if he's not short the underlying, and this requires level 5 approval if he's in a margin account. you may think it's a silly rule (it is in some ways) but that's how it works.

    'cash-secured' and 'naked' are two different things

    i hope that's more clear.
     
    #14     Oct 30, 2008
  5. MTE

    MTE

    Oh, don't worry, I understand perfectly what you are saying.
    Look, at the end of the day, it doesn't matter, the broker is obviously too lazy or not educated enough or doesn't have the right system set up. If someone wants to trade options then he/she should go to a broker that specializes in options. Then it is just a matter of choosing the one that suits you.
     
    #15     Oct 30, 2008
  6. He is right you are a not worth the risk for such a little account mainly.
     
    #16     Oct 30, 2008
  7. There is ZERO risk for the BROKER when puts are cash secured

    Mark
     
    #17     Oct 30, 2008
  8. "he was attempting to sell naked; it doesn't matter if he has a billion dollars in the account, it's still considered naked if he's not short the underlying, and this requires level 5 approval if he's in a margin account. you may think it's a silly rule (it is in some ways) but that's how it works. "

    No, you don't necessarily need level 5 - I have a fairly small amount in my Margin OX account and I CAN SELL PUTS without having Level 5 approval. I only have level 4 and do not want and have never asked for level 5 (I don't want to sell uncovered calls! LOL) And my spending power only goes down by the margin put selling calculation. I know - I have naked puts in my Margin account right now with level 4. Oh and just to clarify, I am NOT short any shares for my put sales.
     
    #18     Oct 30, 2008
  9. MTE

    MTE

    ditto. I'm with Thinkorswim and they don't have trading levels at all! And I can sell naked puts without a gazzilion dollar account. :)

    Anyway, these are just semantics.
     
    #19     Oct 30, 2008