Options trading approval at Ameritrade

Discussion in 'Options' started by Audi_R8, Aug 3, 2011.

  1. Audi_R8


    How do you get level 2 (just want to be able to buy calls or puts) option trading approval?

    I have a small account over at TDameritrade but they only gave me the ability to write covered calls and cash secured puts. Apperently, I didn't answer the questions correctly or whatever.

    So what the heck? I just want to buy a call or a put, nothing fancy.
  2. So, you applied for level 2 and were denied?

    Did you call and ask them why?
  3. You lie , its that easy.
  4. My experience with Schwab and Fidelity is (was) that mere mortals and retail customers are not allowed to speak directly with the Options Department. In fact neither are the grunt brokers. You must comply and bide your time and sell covered calls for a while, then apply again.

    Why not try Thinkorswim, who is owned by TDA anyway? ToS doesn't have "levels". If you are approved you can start off selling SPX calls if you want.

    EDIT: In fact Schwab is so bad that when I merely changed my account from my own name to my trust that caused by option trading level to be set back down to level 1. They refused to raise it so that's when I switched to Fido.
  5. :D
  6. spindr0


    Some brokers require that you take a short option quiz for approval. Failing that may be why you were denied.

    If the questions were about trading experience, net worth, etc., your account size may be the issue.
  7. I was initially denied with TDA but then I reapplied, with the appropriate lies, and got approved.
  8. Audi_R8


    So, did you just go through the website and apply for a different level but change all your anwers about net worth and options experience? or did you open a whole new account?
  9. Actually it was my wife who did it but I am pretty sure she did it all through the website. Experience level was where she got into trouble at first.
  10. Make sure you are telling them you are a hyper-aggressive/huge risk-tolerant individual. I was initially denied for even Options Level 1 on my wife's Fidelity account, so I went back and checked the appropriate boxes making it sound like I thought trading 100kg of Afghan poppies was no big deal.
    Might want to bump your "assets" up a bit as well.
    My guess is small accounts are more likely to get denied.
    #10     Aug 4, 2011